The current market has many people worried. The top image shows valuation of the VFINX - Vanguard 500 Index Fund, which tracks the S & P 500. It looks scary.
The second is the five year picture of the same fund. This chart puts the current dip in perspective. Also realize that none of the above charts include the dividends paid to investors.
The last shows the same fund going back to 1987. The crash of October 1987 is at the far left. In retrospect the current situation is just a blip, so keep perspective and hold on for what could be a wild ride. Also, if you practiced dollar cost averaging during the 2001-2003 downturn, you took advantage of the dip by buying at what looks now like sale prices. By taking a broader view you can see that if you have a long time horizon, dollar cost averaging through the rough patches can pay off in the long run.
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