As you will hear about on the news OR see it in your investment accounts, the market is getting crushed today on fears that the situation in Syria could turn uglier if Presiden Obama decides to attack Syria following the chemical war the country is waging against their own people. As we know, the Middle East is a powder keg and at any minute could become unstable (as is the case right now). This development is something I'm going to be watching very closely over the next few days to see how any military action taken by the U.S. and its Allies will play out. On the heels of this situation, the price of oil/gas is up sharply today.
Another reason for the massive selloff is how Washington is going to handle the impending budget crisis that needs to be handled/dealt with next week. If there is not some sort of bipartisan plan and agreement, we could start to see government shutdowns and higher taxes...
All that being said, I am not stepping up and buying stocks or adding to mutual funds today; the market feels like a falling knife and I believe we'll get a chance to buy stocks at lower levels despite todays selloff. At some point stocks will be down in price enough that they become attractive as dividend yields rise. Until then, I'm just glad I've been taking profits and adding to my overall cash percentage. Sometimes it's wise to sit on the sidelines.
