Here is how one reader reacted to my post --
It could be heading for a 10% correction. That's nothing to dismiss, certainly. But it is a reflection of this particular 'average', that's been tweaked and modified and so on. There are other more important measures of market trends and activity. But, clearly, there's a sell-off, and it's not even Sept, or Oct. A lot of this activity has NOTHING to do with the overbuilt housing sector or businesses that cater to new home buyers, lenders, etc. Many individual stocks are UP. But, it's something of sell-off. And I wouldn't say otherwise - certain key stocks, anyway.
As I said in the other message, I think to the extent one COULD generalize, that the fear-driven investors, which are always the majority, fear both increased interest rates and a credit 'tightening' such as last seen in the 'dot-com bust'. Corporate expansion, and particularly mergers (which have been driving 'profitiability' since the 1980s), would decrease with a decrease in credit or terms which make it unprofitable, obviously. If banks have to discount their loans in order to unload properties they've won through 'predatory' lending, it doesn't mean other sectors won't turn profitable even as a direct result, as I also suggested, previously.
We'll see. Historically, a brief bear market is due. I would doubt this is it, so soon.
Topic: Stock market is crashing! (Read 654 times)