The market is clearly in a process of letting off some steam. Some call that a sell off, most call a it a correction... I just call it business as usual.
I don't believe that stocks can just go straight up, so at times there will be swift moves by the heard of investors to let go of some risk and sell equities and move to a more defensive position. They often do this when there is a greater amount of uncertainty in the air.
Over the last few session, the big indices are in the process of giving back 3.5% or there abouts. That seems like a lot - but keep in mind the monster gains the indices racked up in 2013.
Now for the question and answer part. Do you think this correction is earnings driven or Fed driven? I am personally in the camp that feels the market wants to test the new Fed Chief just as they did with Bernanke and Greenspan before him.
The second question is how big of a pullback / correction / sell off will we see?
Chime in below and let us know what you think!
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