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FYI: I got my head handed to me today with both individual stocks and funds. See what tomorrow brings, might just do some buying. The only positive was there wasn't a lot of volume Regards, Ted http://www.reuters.com/assets/print?aid=USBRE9770GZ20130815
You're an old hand...you know very well it ain't all straight up. Also, as I'm sure you know, this sort of stuff is fairly typical for this time of year. I wouldn't be too worried at this point.
Most of us have seen a lot of days like this, and no doubt we will see more of them. To me, not a big deal and really long overdue. In the grand sceme of things, this will not even register on a 10-year chart of the market's history. Yes, we could see more pressure. But that, too, is to be expected. We have clients who have been waiting for a pullback? Is now the time to start buying? No way to be sure, but it is clearly a better time than a week ago or mid-June.
Art Cashin, who you've cited before, has been talking about something known as "The Hindenburg Omen" all week. I first caught his commentary at market close on CNBC Wednesday. Don't know if his words may have helped fuel the recent downdraft. Like the Hindenburg, this is lot of hot air IMHO. That said, market's been looking for an excuse to go down for a long time now. And I've been looking for an excuse to buy. So put a small amount of cash back to work Thursday.
Of interest, European markets did not follow through with the same intensity as the U.S. downdraft, as one might have expected - just mildly down and mixed overnight. The CALC 40 (France) is currently in the green. Many European indexes reached record highs earlier in the week. Also noteworthy, commodities and gold are bucking the trend.
FWIW - my own humble (and uneducated) sense is that valuations are still on the high side and so I continue to hold a little extra in cash. Time will tell - but as BobC opined, a single day doesn't mean very much.
PS: The "elephant in the room" of course is interest rates. Didn't mention it above as has already received lots of attention here and elsewhere.
Comments
Of interest, European markets did not follow through with the same intensity as the U.S. downdraft, as one might have expected - just mildly down and mixed overnight. The CALC 40 (France) is currently in the green. Many European indexes reached record highs earlier in the week. Also noteworthy, commodities and gold are bucking the trend.
FWIW - my own humble (and uneducated) sense is that valuations are still on the high side and so I continue to hold a little extra in cash. Time will tell - but as BobC opined, a single day doesn't mean very much.
PS: The "elephant in the room" of course is interest rates. Didn't mention it above as has already received lots of attention here and elsewhere.
Link to Cashin story: http://www.moneynews.com/InvestingAnalysis/Cashin-stock-Hindenburg-Omen/2013/08/13/id/520079