Saturday, August 22, 2015 – 09:45 a.m.
The various U.S. stock market indexes have essentially declined 10% from their record highs earlier this year.
Now all of a sudden the world is coming to an end.
A non-stop barrage of news stories is flooding the internet this weekend. It’s nauseating to say the least.
If everyone expected the markets to go up forever, think again.
Remember back in the really ugly days of 2008, when the Dow Jones Industrial Average fell below 7,000 from just over 14,000?
Now that was a collapse.
Right now were talking about a fall from around 18,350 to 16,450. That’s it!
While China, which has a tremendous amount of fraud in its markets, is the focal point, most U.S. Companies are reporting solid earnings and modest profit growth.
The last correction of 10% or more was back in 2011, and that’s a long period of time in between.
While markets may go lower early next week, in the whole scheme of things it’s just a pin prick.
Eventually down the road, just as in 2007-2008, excesses will build up and there will be a large decline.