Labor Day is this weekend.

(You actually might be reading this after Labor Day, which is the “unofficial” end of summer).

We have four months until the end of the year.

Most of us will get more done in the next few months, than we have during the “summer” months.

There’s an old saying in my field, that the “Wall Street professionals go back to work after Labor Day”.

The last time the “professionals” were in charge of the markets, they went down (first half of the year).

When the “professionals” were spending the summer in the Hamptons, the markets went up.

Coincidence?

I don’t know about you, but I don’t like basing my investment styles based off of old adages.

I like to base them off of charts like the one above (because I’m a nerd).

And the chart above is not good!

This chart shows that price of the S&P 500 has fallen below its 200 Day Moving Average.

The S&P will have about a week to “bounce” off of this low, or the damage will be done.

The market needs to find “support” and put a floor in here.

There are too many algorithms and financial nerds like me that will hold on to (or worse), raise cash if the market cannot get above its 200 day moving average quickly.

So, we will all see what will happen next week during the first full week of September, when the “professionals” are back in charge.

So, what should you do now?

Now is the time to make sure that you are taking the right amount of risk with your assets.

We all tend to be a little more aggressive (greedy) when the markets are going up and a little more conservative (scared) when the markets go down.

But you don’t want to make “knee jerk” reactions to the market movements.

You want a plan to “respond” to the conditions that you have (which may not be the conditions that you want).

Don’t react, always respond (with a plan).

Here is an easy way to remember what you want to do.

Would you rather have your body respond to medication that you are taking or have a reaction to medicine you are taking?

Are you prepared to respond or will you have a reaction to the medicine (downward trending markets) that are currently affecting your hard earned dollars?

At 9am on September 1st, we will be letting all of our clients know exactly how to respond using their assets within their employers' plan (401k, 403b, etc).

Make sure you have a plan and stick to it (respond)

Markets like these can easily test someone’s patience and resolve and make them have a reaction.

So again, make a plan and stick to it.

Religiously,

Unsympathetically.

Unapologetically.

And if you don’t have a plan, you need to get one really soon.

If you have been winging it up to this point and you don’t have a plan, please talk to your adviser ASAP.

And if you are reading this and you don’t have a financial adviser, click the “Start Now” button in the upper right of the page.

Then click the button under the “No, I don’t have an Adviser” section.

Answer the questions and will find you an adviser we trust.

They will be able to discuss your options, how they work, their fees and how they can help you create a plan and/or execute the plan as well.

Either way, please don’t spend any more time without a plan for your money.

My expectation is that this year will be extremely volatile.

And you definitely want a plan to deal with it!

Stay confident my friends!

-Kevin T Clark, RF

Kevin is the CEO and Co-founder of Plan Confidence Corporation (PCC). PCC is an SEC registered investment firm specializing in providing advice to hard-working Americans investing in their employer’s retirement plans (401k, 403b, TSP, etc). He is also one of only a few hundred Dalbar certified Registered Fiduciaries in the United States.