The S&P 500 is down two days in a row, significantly, and everybody is panicking.
Volatility is up from 12% to 16% and the whole world is about to collapse.
The fact that we are 3% from the all-time highs has nothing to do with this sentiment. Stock markets are supposed to go up forever, all in a straight line, right?
Less sarcastically, my general feeling out there is that almost anybody investing from about August 2011 has not felt the experience of real loss. As a result, I think the market sentiment is going to be quite skittish – people with gains will want to lock them in quicker than normal, especially now that the 2013 tax year is over. Just a guess.
I continue to have 1/3rd cash and am being patient.