With the entire world still in a tizzy thanks to Black Monday, the Vampire Squid’s asset management arm would like to calmly point out three things to you: A. Nothing is rotten in the states of America, B. Black Monday was just a reaction to several bearish actions, and C. Investors should probably cool their jets about it.
Because as far as they’re concerned, Black Monday was nothing but a tiny reminder:
“We believe investors should anticipate higher volatility, especially in equity markets – and that investors should be prepared to exercise patience. The S&P 500 had gone more than 1,300 days without a 10% correction, a streak that spanned nearly four years. We view recent events as a reminder that localized pressures can cascade into global markets in ways which have been rare during the last few years’ below-average volatility levels.”
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