If you are a net buyer of stocks, which most people generally should be unless they are in or near retirement, you want prices to be lower, rather than higher. It is just like anything else being on a discount, plus it raises yields. Despite weaknesses in some multinationals with large exposure to emerging markets, as well as the energy sector pretty much across the board, the financials for the large majority of S&P 500 companies have remained strong. Most of the pullback is due to lower P/E multiples as growth is slowing. Add in the uncertainty with the timing of the fed rate hike, and that's why you are seeing this correction. Now it is possible we could be heading toward a recession but that is just part of the normal business cycle, and it shouldn't be anything like 2008. When the market started falling in late 2007 and early 2008, you had several economic catalysts such as the bankruptcies of Countrywide, Bear Sterns, and Lehman Brothers. We don't have that right now, as the market is mostly moving on fear and the slowdown in China. I will bet you the Dow will hit 22,000 by 2017.
