CORRECTION 2016: WHAT'S NEXT?

摘要

When equity markets broke sharply last August it was a bit of a shock, especially given the one-day drop of 1000 points in the Dow Jones Industrial Average. But at the end of the day the August move was a standard correction of a little higher than 10%. It had been pointed out that such corrections in the age of the Federal Reserve's zero-interest-rate-policy have been few and far between, and overdue. Basically the market was due a correction, and after it hit, the market rebounded, showing the long-term bull market from the March 2009 low was alive and well and still intact. However, when the market corrects 10%, it is significant, even more so when these events occur twice in a six-month period. One solid correction is expected, two within six months could be a trend.