With Dow off more than 260 points, the deepest drop since 2003, everywhere I look, all I see is red. When I checked my Scottrade account couple of minutes ago, I found my paper assets have shrunk nearly $8,000 already and that’s just stocks. The total loss could be well over $10K at the end of the day when I open up my Quicken and download all the data. It won’t be a pretty picture.
However, when I see decline at this magnitude, I usually don’t seek refuge (there’s nowhere to hide anyway). Instead, I try to buy a little more. In fact, I already ordered $200 of both DODGX and DODFX, and another $100 $200 of TGLDX this morning.
Today’s decline is largely due to the the sharp sell-off in China, where two major indexes both dropped more than 8%, the worst in almost a decade. And the plunge in Chinese stocks has sent shock waves across the globe, in both developing and developed markets. According to Bloomberg.com, major indexes in France, Germany and Britain all fell more than 2%, while in Asia, Hang Seng index dropped 1.8%, Nikkei fell 0.5%, and Singapore Straits Times index lost 2.3%.
One thing is for sure. Since there’s only one day left, this month’s net worth update won’t be the one that I will expect.
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