An experienced accredited investor keeps a close eye on current positions and regularly reviews holdings compared with short and long term goals with a financial adviser. There Investments in Real Estate, stocks or bonds but whatever the asset, keeping a watch is second nature. And if the investor is stocks tumble againloaded up in stocks, July wasn’t the best month.

In fact, July finished out with the first drop since January of this year, closing at 16,564.91 down -315.45 adding onto yesterday’s loss.

It seems that the closer we get to the end of the QEIII program, attitudes are beginning to shift. When it was announced just over a year ago by then Chair Bernanke the Fed will soon end the program, both stocks and bonds got rocked. But they recovered and over the past few months have essentially ignored the end of stimulus. But there are those who are looking at the Fed’s plug-pulling and not liking what they might see.

Investors are seeing more and more positive signs in the economy and one report today, the Employment Cost Index, or ECI, came in with an increase of 0.7%. That’s the largest jump in labor costs since 2008. Employers are paying their employees more and that’s usually a sign of an increase in demand for certain products and services. Raising wages is often done to compensate an employee who is doing more work and is the preferred choice compared to hiring a new worker, at least until the employer is convinced the economy is indeed moving forward and not looking back. So why the selloff?

As economic signs show improvement, it can lead the Fed to raise interest rates sooner rather than later. The 2Q GDP coming in at 4.0% and labor costs on the rise along with other recent data has investors worried that the Fed’s band will stop playing and rates will begin to rise. There is so much on the table right now from geopolitical events to the Fed to the Euro that many investors are selling stocks and paring losses.