Sunday, August 19, 2007

10% corrections

You're looking at 10 years of bull market history. During that 10 years we saw 9 10% corrections or better. 10% corrections don't seem to be all that unusual. For all the panic lately you would think something incredibly out of the ordinary had happened and maybe something extremely rare will happen but as of right now this just looks like the same old thing we've seen happen many times in the past. As a matter of fact at the moment it looks extremely tame when you consider the financial Armageddon rhetoric being thrown about. If 10% is all the market can muster with the credit markets locked up then this has got to be one of the strongest bull markets in history. The last time we had a financial meltdown was 98 and the market managed to drop 22% before common sense came back and the world realized the sky really wasn't falling.