New Sloan piece on SA

How Should Investors React To What Is Going On In The Stock Market?…

“The market has recently been volatile with a downside bias; stocks with no earnings or cash flow have been hard hit while stocks with solid earnings and growth are steadier.

Two views: (1) its a valuation correction punishing novice speculators or (2) it’s the beginning of a massive crash as predicted by GMO founder Jeremy Grantham.

So far market action is consistent with either. The most serious Crashes include dreadful economic events like 2007-2009; the Crashes of 1987, 2000-2003, and 2020 were less serious.

The professional view says do nothing in a crash because the market always comes back; this presupposes having a plan in place usually in index funds.

The worst crises may warrant a more proactive approach increasing cash, increasing and focusing on international diversification, and reducing risky positions.”


We enter a period of market volatility due to uncertainty. Rising interest rates, infation, high PEs, Covid uncertainty, supply shortages, etc. The Feds hope to arrange a soft landing. No easy solutions. Keep an eye on things until it gets sorted out.