Stocks tanked, rebounded, then tanked once again–leaving at least this observer, if not the selling, feeling absolutely exhausted.
When all was said and done today, the S&P 500 fell 3.9% to1,893.21, while the Dow Jones Industrial Average declined 588.40 points, or 3.6% to 15,871.35, its largest decline since Aug. 2011. The Nasdaq Composite dropped 3.8% to 4,526.25, is biggest drop since Nov. 2011. What’s amazing is that it could have been so much worse, and yet was still the worst day in four years.In a similar vein, Canada's Financial Post is headlining:
BMO’s Brian Belski and team don’t seem too worried about the extent of the selloff:
However, the price weakness that US stocks have exhibited the past few days is frankly what most investors have been seeking for a few years. In addition, the doomsayers and bears are taking victory laps after a 10% correction or so from recent price highs. How about some perspective? The S&P bottomed out below 700 in March 2009 and recently exceeded just over 2,100. Our apologies if we sound terse, but come on – a 10% to even 20% correction is well within the normal scope considering the duration and amount of gains. In addition, check the calendar....MORE
Don’t be so fast to call this the end of the bull market
As the man said: Capitulation it Ain't.
See also FT Alphaville's "Morgan Stanley: ‘Buy! Buy! Buy! Buy! Buy!’".
