The last time the breadth was this low (~11%) was on 2/3/14. Do you know what happened almost immediately after that? The market ripped higher. That doesn’t mean history is going to repeat itself. Maybe this time is different. Perhaps the market has topped for good and Ebola is coming to a movie theatre near you.
People always get pessimistic on down days. I am sure the rhetoric was mind numbing on 2/3/14, with the reader class throwing meat loaf at me and everyone rolling into their FAZmobiles. But then the market bounced and everyone lost all of their money again.
Are you going to lose all of your money again? Or, this time, will you remain stoically patient in the face of grave horrors?
I am long the market, with size. For my personal account, 25% is wrapped up in TLT, which is underperforming (for now). Rates aren’t going higher and Spain does not deserve to have lower rates than the United Steaks of America.
This is most likely a buyable dip. Naturally, timing is key. I will be watching out for oversold signals throughout the day.