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Here are five reasons why investors might not want to worry so much about events in October.

Market valuations are now very reasonable

According to FactSet, the forward 12-month price to earnings (P/E) ratio for the S&P 500 is now 15.6. This P/E ratio is below the five-year average (16.4) but above the 10-year average (14.5). With very strong economic conditions, good corporate earnings growth and lots of dividend increases and acquisitions, we would not view a 15 P/E as at all excessive. There has been lots of chatter about the ‘overvalued’ stock market, but it simply is just not the case. Put another way, just because a bull market has run a long time does not automatically mean it needs to stop.

Economic conditions are more than just ‘not bad’ — they are great

Unlike in 2008, we do not have a seize-up of credit markets. Employment is at a record. Commodity prices are not surging. Corporate earnings are solid. Things, simply put, are just not bad at all. Generally, the market reacts to the economy. The sharp sell-off in October simply made little sense if you look at economic strength, particularly in the U.S.

Investors were really not that scared

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While we will never ignore market signals, we simply were not that worried in October because we were closely watching the VIX, or volatility index. It never breached 30. In 2008, it hit 80. Even in February — this year’s other “panic” — it hit 37. In 2011, it hit 48. Thus, in terms of real panic for investors, October really wasn’t even close to other panics, which of course, all proved to be opportune buying times (as panic usually is).