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Today was a good day to be teaching investments. My student managed investment fund class was a bit shellshocked at losing 3 1/2 % of the fund's value in one day (we meet on a MWF schedule, so there wasn't class on Tuesday). And 100% of our 20+ positions in the fund ended in the red for the day (hence the title of this post). So, there was a lot of discussion about the various stories explaining the drop (Shanghai, bad economic news, and the ever-popular "Greenspan said we're due for a recession").

the biggest piositive is that it has sharpened their focus on the "downside" of being in the market. Everybody has to see a major correction at some point, and it's better to see it earlier than later (and it's even better if you can experience it with some else's money). We spent a lot of time discussing some positions we plan on exiting and whether or not to sell now, wait and see, or put in stop losses. Of course, I won't tell you what they decided.

But on the good side, the fund has clawed back almost 8/10 of a percent today. It's still not great, but it is an improvement over yesterday's results.

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