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Photo Credit:US National Oceanic and Atmospheric Administration 

I’m sure that you have heard the airline pilot say many times to buckle your seatbelt since there is the chance of turbulence ahead. On a flight to Texas the pilot gave this standard advice.  The overhead seatbelt light came on and I heard a couple of clicks nearby.  I have always been an obedient passenger so I didn’t need to buckle my seatbelt.  We entered some mild turbulence within several minutes and then all of a sudden (gasp) the entire plane fell faster than any roller coaster ride that I have ever been on. I observed the beverage cart jump 6 inches off the ground, the flight attendant hit the ceiling, and about one out of four passengers rose a foot out of their seats.  The intensity was so significant in the the plane that you could hear people taking breaths over the roaring of the engines.  After the 3 second free fall the plane quickly leveled. Within seconds of stability all you heard was .. CLICK CLICK CLICK CLICK CLICK CLICK … The pilot came on the overhead speaker and indicated that we had hit an air pocket that caused the plane to drop.  He indicated that we were fortunate in that we only hit a moderate pressure drop.

What impressed me most about the remainder of the flight was that the flight attendant locked herself in her seat and refused to get out. She was so shaken up that I wouldn’t have been surprised if she quit her job after that flight.

Why am I taking the time to tell you my air travel woes? Right now the market is quite turbulent.  Many people are not very comfortable and they want off the plane.  When I fly today I know there are risks of turbulence, but I believe overall that the time benefits and safety of air travel outway the cost of driving across the country.

I believe investors need to take at least a 5 year time horizon.  We are invested in the market for long term results, short term turbulence is a natural part of investing.  Given the reasonable PE ratios of the market I’m going to keep my seatbelt fastened and continue dollar cost averaging in new money.

What are your thoughts about the turbulent market?