This is a serious and troubled situation.
But remember, it was only a short year and three months ago that it was the exact opposite. The news was all the other way and we had excess liquidity in the markets.
I mention this because it is important to remember how fast and furious investor psychology can shift from greed to fear. And on a hopeful note, remember it can also quickly swing the other way. And inevitably it will.
The recent rapid succession of major financial failures or near failures has led to a severe liquidity crisis that is clogging the credit markets.
It's a fact we are in a liquidity crisis.
It's a fact the financial services landscape is going to continue to change.
Panic has gripped the markets and is currently pushing the prices of many assets to unsustainable extremes. The virtual collapse of both consumer and investor confidence will delay, but importantly not deny, an eventual economic recovery.
Still, the most important thing to remember is that risk and return remain the key principles of successful investing, even in stressful times like these.
Make an appointment now to review your asset allocation with your advisor. Remember, history has proved over and over again: the single biggest risk to investors is not being in the market when it goes down, but being out of the market when it rises.