“Hang on, Elizabeth. I’m coming.”
That was the calling card of the 1980’s sitcom Sanford & Sons. Red Foxx regularly feigned a heart attack when his son said or did something he deemed over-the-top. And that brings us to today’s market freak-out.
Is this the Big One?
When it comes to market freak-outs, this one is middling at best. Recall that 31 years ago the market dropped 23% in a single day. Now THAT was a freak-out.
With today’s short-covering rally we are only down about 7% from the last peak. That’s not even a correction. That’s a pullback, and pullbacks are about as common as fleas on a dog.
Does this mean we should ignore the recent market turmoil? No, but neither should we allow ourselves to slip into panic mode and do something stupid that will cost us in the long run. Like selling everything and hiding under our beds.
The way I’m playing this is to buy SH, the short S&P 500 ETF. It’s easy, efficient, and a great way to make a little money from those who are in panic mode.