What happened today with the markets was so dramatic it broke a record, The Dow at one point was down 998.50 during the course of the trading day. Not the kind of record you want to see broken, if you are long this market. But to my point on yesterdays blog, markets in part are truly driven by the two most powerful emotions, fear and greed. When fear hits the market it seemingly has a much more powerful effect pertaining to % moves to the downside, than greed does to the upside. Having said this, more times than not in an environment like we had today, small-caps and especially micro-caps are typically not caught up in the hysteria and panic that comes with days like today. Of course you always have to be selective when investing in the small-cap and micro-cap space, for indeed enormous volatility can exist there as well.
Lets see how this shakes out over the next few weeks and hopefully the European Central Bank will instill confidence in their system by providing liquidity and buying up some of the Greece, Portugal and Spanish debt that seems to be the biggest fear factor going right now.
Good Luck to all and stay tuned.