The two most recent big market dives continue to haunt investors as they take one rout after another. On the bright side, unlike 1987 and 2008, the collapsing market’s strength hadn’t been built on criminal enterprise or systemic, willfully-ignorant gambling. (Our current political situation, however, appears to display hallmarks of both, in spades).
“There are more than hints of panic in the air today,” Jason Goepfert, president of Sundial Capital Research, wrote in a note Thursday. “There is clear evidence of wholesale selling on a level we rarely see.”
Rather, this 2018 collapse (can we call it a collapse yet?… or are we still saying it’s a “rough patch?”) is more like a market correction for an environment that had optimistically embraced recent strong employment along with a hope for continued GOP-led pro-biz juice. That optimism (for juice at least) is proving to have been misplaced with a charlatan, but the market would do well to embrace the larger picture of continued strong employment, which should continue to benefit it in the long term. Just gotta ride this thing out for now.