Markets had bounced back after sell-off in Feb too: observers

Back in February, the story was even worse, with the Dow ending down 416 points. But the markets saw a quick recovery in the weeks that followed. Whether observers see Thursday's decline as a sign the economy is poised to take a hit from an unravelling housing market or as merely a hiccup, many say the fundamental economic story didn't change overnight.



But the pullback had been brewing, Mr Massa said. 'It was inevitable.'

Even absent the concerns that clouded the mood on Wall Street on Thursday, the market's rise in the past year dictated investors take a break, said Al Goldman, chief market strategist at A.G. Edwards in St Louis.

In the three weeks before Thursday, the Dow had risen 5 per cent, while the S&P 500 gained 4 per cent and the Nasdaq added 5.7 per cent. 'The basic problem in the market is that we've been up, up and away and needed a correction,' he said. 'This has been a bull market for 57 months.'

But he contends the sell-off was overwrought and that some investors have been waiting on the sidelines for a chance to snatch up some bargains. 'What I saw in the market was panic selling. There were no prisoners taken. Everybody was taken out and shot. I don't think this is going to develop into a 10per cent correction.'

Goldman and other long-time Wall Street players say the global economy remains strong, even as the US economy has slowed.

While it is too soon to tell how Wall Street might reconcile some of its concerns, investors would be well-served, observers say, not to panic and to remember that the markets bounced back after the Feb27 sell-off.

In fact, Goldman sees opportunity. 'The best time to buy stocks is when you're least comfortable buying stocks.' - NYT, AP

Livermore... :)


Ah, you got to the point at last...
since you are such a staunch advocate of 'holding for the long term'.

In a downtrend or a bear market, which no one can really predict,
one is forced to agonise over whether to sell off first then buy back later at a lower price...

... And this is what trading is all about !!! ... 

Today's Straits Times contains an article (Washington Post?) which would be extremely beneficial to anyone...

It is in the "commentary Section" on page S35 (Money) ...