I'm no expert at the stock market watch, but this latest September-October downturn, while by no means on the scale of the 2008 crash, looks pretty bad. yet you go onto market watch TV shows and you see people arguing about whether this is a correction or nothing to worry about. With Japan slumping and now Germany and perhaps the rest of Europe slumping into recession territory, Chinese GDP getting softer, is it time to wonder whether there is another recession looming if not yet actually present?
Or is this just another case of protecting the president pre-midterm elections? I'm wondering why there isn't a healthy dose of skepticism here. Rose-colored glasses seldom work out.
I'm not suggesting that either protecting the president or unjustified optimism is the case but the level of optimism among the wealth-and-trading pundits does make it seem that they are trying to talk us into believing there's nothing to see here. Or perhaps it's themselves they are trying to convince.
Or maybe I've just been reading ZeroHedge too much lately.
UPDATE: As it turns out, not everyone thinks this is worth ignoring.
So there's that.Now, in the last two weeks the stock market has undergone a substantial correction that may yet turn into a full blow crash. The Dow Jones Industrial Average has dropped by about 1300 points since October 1, falling from around 17,200 to 15,900 as of late afternoon on October 15. The S&P 500 and NASDAQ have fallen by similar proportions. All told, the U.S. stock markets have lost close to $1.6 trillion in wealth in the past two weeks. By all appearances, the correction has not yet run its course. The markets could fall still further on worries about slow growth in Europe and the United States, and a general sense that events are spiraling out of control.