Dr. James Paulsen of Wells Capital Management recently reflected on "Armageddon hypochondria," or what he describes as a "widespread post-traumatic stress disorder" resulting from the Great 2008 Crisis. He points out that 80 percent of the movements in the stock market during the last year are due to "rolling popularized crises."
Turning to the fundamentals, Paulsen notes that in the latest quarter, U.S. corporate profits rose at the robust annual rate of 12.8 percent. He believes that "those who can stay focused on the longer-term fundamentals and attractive valuations and not be spooked away from equities during emotional panics will likely be rewarded in the long-run."
Click here for Dr. Paulsen's commentary of August 29.