“Officially,” a bear market begins when an index has dropped 20%... a “correction” begins after a 10% shellacking.
So here’s the crazy thing: This morning, the Dow is 8.9% off its all-time high. And the S&P is down just 9.7%. We’re not even in “official” correction territory yet… and already investors and fund managers alike are screaming bloody hell. Here’s how your cynical editors view these current events:
A) The sell-off and the dramatic response from the Fed shows just how feeble the rally was over the summer. And… the bombastic fools who were crowing about gains in June and July knew it was a feint.
B) Investors are so leveraged in their portfolios, their houses, their cars, their clothes and their rock ’n’ roll lifestyles they can’t afford for stocks to go down. Even just a little bit.
So here’s the crazy thing: This morning, the Dow is 8.9% off its all-time high. And the S&P is down just 9.7%. We’re not even in “official” correction territory yet… and already investors and fund managers alike are screaming bloody hell. Here’s how your cynical editors view these current events:
A) The sell-off and the dramatic response from the Fed shows just how feeble the rally was over the summer. And… the bombastic fools who were crowing about gains in June and July knew it was a feint.
B) Investors are so leveraged in their portfolios, their houses, their cars, their clothes and their rock ’n’ roll lifestyles they can’t afford for stocks to go down. Even just a little bit.
No comments:
Post a Comment