Director of Research at Pension Partners LLC, Charlie Bilello, CMT, was featured in MarketWatch on Thursday morning with some rational reasoning about how to react to Wednesday’s drawdown.

 “Is there ever a reason to sell? Certainly, but it should be unemotional, in response to a clearly defined strategy or a change in goals/risk tolerance/holding period,” Bilello told reporter Barbara Kollmeyer.

“Panic is the worst response in or out of a falling market,” Kollmeyer paraphrased. 

“If you’re not handling what’s going on right now, then trim back positions,” Bilello added, but, using the chart above as evidence, he cautioned that there has never been a situation where the market failed to recover from an apparent drop, no matter the cause.

Analysts Ryan Detrick, CMT, Doug Kass and Mike Shedlock offered supporting views. 

“Since 1950, there have been 7 other years that were positive YTD going into October and saw the S&P 500 turn negative YTD during October. The good news is the final two months were higher 6 times and up 4.1% on average,” Detrick is quoted as saying in a tweet. 

Read the entire article here: A ‘lost decade’ for stocks may have just arrived, says this adviser.