It looks like the stock market is entering a correction phase...
With the breakdown in the high-yield bond market, the sharp recent increase in the 10-year Treasury yield, and the record high level of New York Stock Exchange (NYSE) margin debt, the stage is set for a significant correction.
We haven't seen a 10%-or-greater pullback in the broad stock market
since November 2011. So we're certainly overdue for one now. And I
think the action we're seeing this week is the beginning of that sort of
move...
Take a look at this updated chart of the S&P 500...
As of Tuesday's close, the S&P 500 was trading only about 2.4%
below the all-time high it made last month. So many folks might argue
that it's premature to talk about the market entering a correction
phase. (more)
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