It’s a seasonal thing. Stocks historicaly drop in july. It’s the deepest long term statistic seasonal dip in the year.
Otherwise the cooling economy and the overrated market are facts but stocks still better then anything.
But I will no further invest in high tec and steel uess I but turn to altria, procter and the pharma business.
Excerpt:
** If gluttony describes the acquisitive reach of the mega-rich, then the same gastronomical metaphor applies to today’s state of the credit markets. Stuffed! Both borrowers and lenders may have bitten off more than they can chew, and even those that swallow their hot dogs whole – Nathan’s Famous Coney Island style – are having a serious bout of indigestion. Several hundred billion dollars of bank loans and high yield debt wait in the wings to take out the private equity and leveraged buyout deals that have helped propel stocks to Dow 14,000. And lenders…mmmmm, how do we say this…don’t seem to have much of an appetite anymore. Six weeks ago the high yield debt market was humming the Campbell’s soup theme and now, it’s begging for a truckload of Rolaids. **
We will see it all develop in real time. But the DOW only fell about 1.63% yesterday. The S & P only dropped 1.98%. The Nasdaq 1.89%.
Let’s see what happens by the close on Friday.
Another 3% down and that will almost make 5% Institutional investors have not yet weighed in. If the market falls 5% in a week, then the following week will bring out those who panic. (Mom and Pops asleep in their cozy beds checking in weekly on their 401(k) assets).