I threw a few words down discussing this week’s wild ride in a column for the Washington Post. The online version has the modest headline Why the wild stock ride? Why the wild stock ride? but I like the print headline Man the lifeboats: This is not a drill!.
Here is an excerpt:
“Last week’s havoc should be looked at as a warning shot across investors’ bows. The disruptions signal a major change in risk appetites — the willingness of large institutional buyers of stocks to continue accumulating equities.
The changing economic data make a recession less of a long shot and more of a real possibility. The standard cyclical recession causes a market correction of about eight months and a market drop of about 20 percent.”
Feel free to leave comments here or at WaPo . . .
Man the lifeboats: This is not a drill!
Washington Post August 04,6:58 PM