HEADLINE CONSENSUS (Negative/Bull Market Indicator): The stock market is (insert adjective here)

October 17, 2014

Whenever the stock market gets some cold water thrown over its face, a certain element of shock permeates investors. The media, always looking for a good shock story will then add its contribution to the proceedings. Below is a sampling of adjectives some of the mainstream publications chose to capture current moment.

TSX suffers another harrowing day, takes triple-digit dive

As markets plunge, it’s time to take stock

TSX tumbles again, close to shedding all gains for 2014

TSX falls deeper into correction territory, slumping to eight-month low

How ‘spooked’ investors are fleeing to government bonds as stocks suffer

Bulls run for the exit

Japanese markets take a pounding

Greece share prices tumble to 2014 low

Warning light flashes on stock correction

So when stock markets go down sharply, they will dive, plunge, make us take pause, tumble again, do some shedding, slump down a bit, spook us, make us feel to suffer causing us to run, and tumble. Such a wide variety of emotions to capture what is actually a normal circumstance. Stocks go up and stocks can go down. Headlines like these tap our emotions and when emotions get into our consciousness, it can make us do bad things. It is at these moments where if we can maintain some level of balance and perspective, that these moments in time can actually a signal a call to action because as the market throws the baby out with the bathwater, some very well run and profitable companies will suddenly go on sale.