Red is not always a time to panic, especially if you have time left in the market.
More than $1.1 trillion in value was wiped out of the markets in the last 24 hours. Sounds scary right? Context is important though. Right now the world is watching interest rates, watching China show weaker positions each day and watching the US to see which way the elections will swing. This type of behaviour is typical of a herd mentality, everyone watching each other and then panicking as soon as they think they will miss out on an opportunity to get in or out at the wrong time. What we are seeing here, is the markets reacting to uncertainty by reducing their positions in the market and likely switching to something less volatile until the indicators show safety as a more likely outcome. Volatility like this can either be a good thing or a bad thing, depending on your investment horizon. People that have longer left before they want to finish up investing, like superannuation investors may see this as a good chance to buy whilst everything is "on sale" and those with less time may see this as a time to cut their losses and exit too. Context is key. "The time to buy is when there's blood in the streets." - Baron Rothschild ** Please keep in mind this is not financial advice, the information in this post is general in nature and does not take into account any personal situation and you should always consult a licensed financial professional before you make any financial decisions you are unsure about.