Headline Update -- And -- As For What Matters

Not to belabor one morning's worth of volatility, but since I jumped out early with an always-to-be-questioned-headline (and based on the unusual number of hits it fetched) I figured I'd offer a quick followup since that first headline reason for the selloff has been basically abandoned by the media. 

Now it's:

Dow drops 300 points, S&P slides more than 1% as Facebook drags tech stocks lower

Of course there absolutely could be something to the notion that the third largest constituent in the S&P Tech Index would, upon plunging, bring the group down with it. And when the group (the tech sector) makes up a fourth of the S&P 500, sure, the disproportionate hit to the broader index could indeed spark a wholesale selling of index-derived investments. 

In fact, now that bond yields have calmed back down (but not plunging out of panic mind you), and gold has caught a slight bid (but not surging out of panic mind you), there's now more to this morning than simply fear of this week's Fed meeting. 

Not that any of the above matters, mind you, in fact -- given our clients' time horizons -- it doesn't; we just feel compelled to stay a little more connected when volatility picks up. If for no other reason than to help you keep even the short-term in perspective.

As for what matters from a long-term allocation standpoint, this morning's update of our macro index suggests that the economy remains on very firm footing. And while the short-term technicals reflect current volatility (which we see continuing for the time being btw), the longer-term trend indicators haven't wavered in the least...