I am surprised to see you are the only post about this ...and with no comments. Would love to know why this happened.
RE: Would love to know why this happened.
I can think of the following reasons:
1) The Stock Market went up TOO HIGH TOO FAST and now it is trying to reach its reasonable valuation level.
2) Interest rates ARE going up and money is flowing out of stocks into cash.
Guy on the radio (listening to Hannity and in between there’s the news) says it’s because the economy is “too hot” (too good), and also because we didn’t have our annual 10% correction last year. Some economist says it’s an inevitable and healthy correction, and that the market will be even stronger for the rest of the year.
And with what is going on in D.C....THAT is a uncertainty.
In my mind..it is a combo deal. The "M" was due for a pull back...and the D.C. mess.....
I actually bot some issues today...........
It was due for a correction.
Over-due, really.
“I am surprised to see you are the only post about this ...and with no comments. Would love to know why this happened.”
No surprises here.
the only thing that happened is that the market is correcting itself as it is designed to do after a period of Irrational Exuberance.
Went just went through one of the top three BULL MARKETS in our history. It was due for a correction.
Hang on!!!
As to the why. Who knows?
But I believe that although it may sound nice, "Quantitative Easing" is an economic pile of horsechit and the Market can't be fooled forever.
Gravity, as weak a force that it is, also works on financials.
It happened because Munuchin talking down the dollar, people worried about rising interest rates in this good economy, inflation and automated selling and buying.. The percentage down is no way near an all time high.. I’m just ticked I listen to so-called professionals and not my own instinct. It’s all good in the end!
From the article: "Equity traders were enjoying a bullish run recently, and the jolt from the major decline in the US last Friday has triggered a worldwide round of profit taking."
When the market gets overheated, like it has this last year, the slightest hint that the market is about to trunaround or drop in equity prices, the investors come out and sell to take their profits while they can.
The drop in stocks at the end of last week, was a signal for many investors to sell.
This is not unanticipated at some point. Realistically, the stock market can't keep going up and up and up, without cooling down occasionally.
It happens in the housing market too like it's done several times in my career.
Where is George Soros?
When the economy heats up, the Fed tightens money supplies with higher interest, as a shield against inflation. It’s happened before. I’m surprised it took this long. Been posting about it off and on for a few months.
Overdue correction.
Movement into cash to take advantage of surging economy.
Expect it to stabilize right around 24000, then come back up depending on Fed actions on interest rates.
This ain't Black Monday.
Overdue. I’m surprised a correction took this long. That said, I believe investors have priced in the expected drop in equity prices - meaning the price-to-earnings ratio, in most cases, won’t greatly affect the value of a stock.
That said, this could eventually be an aid to infrastructure spending - as investors grow skittish on stocks, they will look for safe havens in corporate and muni bonds.
The market is flush with cash, fueling talk of hiking interest rates. This probably accelerates that
Related: Shekel, Euro, pound down - dollar up
http://www.freerepublic.com/focus/f-news/3629539/posts
The market goes up and the market comes down. When it has been on a streak as hot as it has been for the past year, it is bound to fall hard when it does!
HMMM Russian collusion falling apart now the international financiers trying another tactic?
Seriously. I don’t know. Ask one of the market gurus on FR.
Interest rates increase so the bond market does better. The bond and stock markets are opposite each other.