Most of the experts say the recent, dramatic stock market decline was a normal correction, i.e., what goes up must come down.
What’s caused the rapid movement and stock prices? Stocks dropped 10% from their high – the often recognized signal for the end of a stock correction. Thereafter, stocks rebounded and ended the day up over 500 points.
What used to take weeks apparently now takes hours. Why? I can only attribute this to computerized buying and selling. It does in minutes what historically took days and even weeks via human interaction. Of course, this is only speculation. Is it possible that the correction is over? I suspect the computers will decide.
Whatever the case, at one point, the Dow was down 9.1% from its peak. We’re told a 10% decline is a normal correction.
Even after that plunge, the Dow was still up 242.5% from its bottom in February of 2009.
As you know, the Feds already monitor much of the activity that goes on in the investment community. Unless real abuse can be identified, I would oppose further government meddling unless it is absolutely necessary.
Let’s give the stock market a chance to correct itself.
The real economy is booming since the election of President Trump. He seems to know what he is doing. Let’s not be led by the Dems and/or Leftist-Socialistic media – which tries to make bad news out of every opportunity. They had their chance under Obama and failed.