Market Activity/Volatility - 04/10/14
With the big down day today and the recent volatility it sure has spooked many investors.
Bull markets are often highlighted by big downward moves just like bear markets have big upside days.
Is this the beginning of a bear market or a prolonged market downturn ? In my opinion it is a normal reaction to excesses that have built up in a number of different market sectors. These corrections are healthy although scary when they happen.
Interest rates are still close to record lows and the economy continues to improve albeit slowly. Employment continues to grow which is also a big positive. I am not sure how long the downturn will last but am confident that it is the pause that refreshes.
Of course I may be wrong.