Yesterday within a few minutes of the drop in the indexes, I posted a note to explain many of the headlines that I was seeing immediately after the event, asking everyone to hold their horses and “Don’t Bite.”
This morning as I trolled through my regular 17 major news services, I was happy to see most of the headlines, with just a couple of exceptions, were more descriptive than the “shock factor” initial headlines from yesterday.
At this moment, there is still uncertainty on what exactly happened. A misplaced “B” for billion, versus “M” for million is a possibility, computer glitch, or a withdrawal of high frequency programs may have caused the movement. Certain trades have been cancelled by the various exchanges, confirming there was a glitch, but the reason for the problem is still not clear.
No matter the reason, it was certainly momentarily scary and reinforced our continued thoughts of diversification.
As a side note, across the pond, the UK had elections yesterday, which were lost in the events, but are of extreme importance, and as such, we are keeping a watchful eye.
Have A Great Day!
JK