Written by Robert H. Ruth
Over the last 2 weeks we have been witnessing a significant change in the financial landscape in the United States. During this time we have seen the stock market come down from their recently achieved historic highs. As the price of stocks has decreased, the value of investors’ portfolios, and 401K accounts, have been impacted.
- Whether this is a short term or a long term phenomenon remains to be seen.
- The reality is that the rapid run up in market valuations since the election in 2016 occurred much faster than is normal, and therefore the likelihood of a correction had been anticipated for some time.
- What had not been anticipated was the swiftness with which the selloff has occurred.
- When this happens,