During the past four sessions, the market has dropped significantly in high volume on three occasions. The three primary indexes are all well below their 50 day moving average. This is in spite of the fact that corporate earnings are coming in a strong 6% plus.
Today’s rumor was that the Russians are building up troops on the Ukraine border. Sanctions, Israel/Gaza, Ebola, rising interest rates, wage inflation, default…and other boogeymen are threatening the fragile global economy.
Russia’s Putin might just show the West who’s the boss and launch a cyber-attack or use currency/energy manipulation to sink the stock market. It’s curious that Snowden, the NSA whistle blower had to seek sanctuary in Moscow…we live in interesting times.
Investor’s Business Daily has downgraded conditions to “market in correction.”
Prudent investors should have already been building cash and now will wait patiently for the next buying opportunity.