Why the Stock Market's Really Dropping… and How to Play It – Daily …
Perhaps the stock market is dropping due to the Ebola virus outbreak.
Maybe it’s the fighting in Gaza…
Or the potential for rising interest rates…
There are a million reasons for investors to sell stocks. And depending on which financial news report you read, any one of the worries I listed could be the main culprit.
Want more? Fine.
Junk bonds, stock valuations, small-cap weakness, inflation, deflation, tapering, Russian sanctions, Portuguese banks… and that’s just what I can pull off the top of my head.
But in reality, the market’s slump isn’t pegged to a specific worry or geopolitical event. Stocks can’t go up forever. And right now, it’s clear that they need a break. It’s that simple.
“The S&P 500 ended Friday’s session 2.7% lower than it started on Monday, closing the worst week for stocks in two years,” notes our own Jonas Elmerraji. “No, that’s not a typo – the last time stocks corrected that hard was June 2012.”
Jonas wasn’t surprised by last week’s drop. In fact, he sees more downside risk this month.
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Why the Stock Market's Really Dropping… and How to Play It – Daily …
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