After reaching new record highs just a week ago, markets are selling off hard. Let’s put this in perspective yesterday markets were down about 3% and are down 4% from their all-time highs. While it is been a swift move downward it should not be unexpected. As I reported last month the S&P 500 went over 3 trading months without a 1% move either up or down. That is now in the past.

Volatility is a normal and expected part of the market. We do not view this market turn down as the beginning of the end, but rather a normal anticipated and healthy correction in the market. You just have to look back to last January to see how markets react in a rising interest rate environment. 

If you have a well diversified portfolio of high quality stocks and bonds this recent market action should give you no concern.

September saw the Producer Price Index-a measure of the prices businesses receive for their goods and services-increase by 0.2% month over month. Despite the recent softness, prices at the producer level have been ticking higher since early-2016, though most of the increases have been absorbed by businesses instead of being passed along to consumers thus far. (LPL)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.