Reports of a downed Malaysian airliner near the Ukraine/Russian border sent stocks tumbling midday and throughout the rest of the trading session. A flight to safety ensued with treasury bonds and gold both rallying and the volatility index spiking. The circumstances surrounding the plane were sketchy during the session, but common belief was that the plane was shot down. In the last hour of trading we got news that the Israelis had begun a ground attack into Gaza, which sent stocks further into negative territory. Quite a lot for the markets to deal with. Let’s keep all those affected in our thoughts and prayers.
By the close, the Dow Jones Industrial Average was down 161 points to finish the day at 16,976. The S&P 500 was down 23 points to close at 1958. The aforementioned gold was up $21 to trade at $1320 per ounce, while oil was up $1.88 to trade at $103.08 per barrel WTI.
Today’s market action reminds us why we stay on the comfortable path to our goals. Out of the blue events are going to happen (unforeseen potholes in the road), but when you are traveling at a controlled speed, you can minimize the damage, and continue on your path. If you are traveling too fast, those potholes can do a lot of damage. It has been a while since we have seen some potholes, so this is a reminder that they are out there.
Have a nice evening everyone.