I'm sure many financial "experts" are going to tell you to stay the course. That this is just a minor correction. The market will work itself out. I'm not going to do that. Instead I think this is a symptom of the cancer that has infected Wall Street.
If you want a good read on the subject Mark Cuban has a article about the market meltdown and why they keep happening.
There is a short easy answer. The people that run corporations don't face any risk if the corporation does poorly. They may lose their job but with a golden parachute, a job loss will in fact just set them up for retirement.
The problem is that the average investor doesn't have the tools to know which companies have cancer. If I buy a mutual fund containing these corrupt companies, I'm going to lose in the end. If I buy an index fund that buys the whole market, I'm going to be affected by the infection.
The only safe play is not to play at all.
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What are you going to do instead?