Given the market action over the last year, this piece seemed increasingly relevant. Quantitative easing, tapering, debt ceiling limits, unemployment, slowing GDP growth, overbought conditions, etc… there are plenty of reasons that one could come up with to be convinced to sell out of equities this year. Yet, if one were to listen to the news and act on their emotions they would likely miss out on the current stock rally that has not yet come to an end. Those without a trading discipline will look for news supporting their views so that they can obtain short-term satisfaction when selling during a minor market correction (confirmation bias). They only prove to be disappointed when the longer-term trend re-asserts itself to surpass the point where they cashed out. This is why it is essential to have a discipline when managing investments.
Common market themes continued to persist in August as escalating geopolitical tensions and fears of the Fed tapering quantitative easing caused many investors to reduce their risk bets. As a result, most global indices sold off in August only to gain back those losses in September when the White House backed off a military strike in Syria (for the time being) and the Fed decided to maintain its current policy of zero interest rates and level of quantitative easing.