U-G-L-Y

The best way to describe this market. Year to date as of Friday Jan 18th, the market was down anywhere from 10 to 12% with small caps being the worst performers. The real problem with this kind of sharp downturn in the markets is that no one sector has been spared. The whole notion of portfolio diversification goes out the window because in times of crisis, everything goes down.
The Fed has reduced the Fed Funds rate by 3/4% to 3.5%. This will directly affect anyone with a HELOC and adjustable rate mortgages. However, the impetus for such a move by the Fed, which to lower rates outside of an FOMC meeting is unusual and significant, is to raise the level of confidence of market participants. As of right this minute, the market has been open for 4 minutes and it is down tremendously--Nasdaq is down 5%.
While it is difficult not to feel emotional about losing money--it is times like this that we need to maintain rationality. While no investment is making money right now, we must feel confident in the fact that portfolios are well balanced and have been constructed to achieve long term financial goals and thus we are all long term investors.
I always wonder during times of crisis where opportunities may exist. Is there anything in the portfolio that I would like to own that I should be buying? General valuations seemed reasonable when the market was 20% higher, it has to be even more reasonable now.
As for what I am doing today, I am going to call my mortgage lender to see if I could lock in my adjustable rate (4.5%) for another five years--wish me luck.
I am available if anyone wants to talk.