It took 37 weeks for the US sharemarket to gain +9% and just four weeks to take it all back

It took 37 weeks for the US sharemarket to gain +9% and just four weeks to take it all back. Investors are clearly worried about the growth outlook for 2015 where forecasts remain highly optimistic. It appears that aside from the fanatics standing outside Apple stores that US consumers are increasingly concerned about Ebola, weakening growth, a lack of income growth and so on. Despite the large (and overdue) market correction, a few points here are worth noting. Firstly, the US economy is only moderating from a high level - it is not collapsing, secondly global oil prices are acting like a tax cut and boosting disposable income and lastly a weakening global picture and rising US dollar will delay to US tightening cycle. These are all net positives for consumers and should help cushion the economic downturn and support corporate earnings as activity rebounds in the next quarter. In this world, rapidly declining markets whilst always sobering, can also represent a signal to buy rather than sell and to remain calm while others panic.