But what about the potential for a "perfect storm"??: fear of disease (and over-reactions), terrorism threat, US consumers "flatlining" because of decreased expendable income.
I doubt the new reality will look anything like the old reality, before the recession.
I agree with your “perfect storm” view. There are a number of factors driving this market down. IMO it had gone up too long without a healthy correction. Add to that a long list of domestic and geopolitical problems/flashpoints and you have a witches brew of issues generating very strong headwinds for the market.
And you may be right about the new reality. I’m struggling to find any bright spots in our economy but if the Republicans manage to take back the senate in a strong showing we might get some positive market reaction. Also, the price of oil is down and interest rates remain low which are both pluses for the economy.
But on balance, things are not good. The storm will be with us for awhile longer. The country has to somehow survivie two more years of Obamageddon so in the meantime its probably prudent to stick with a low risk, conservative investment profile. Ride out the storm. Just my two cents.