Saturday, June 15, 2013

Feels Like 2008

"It's déjà vu all over again." ~ Yogi Berra

The last few weeks in the stock market feel like it's 2008 again, begging the question of whether the ending will be like 2008. Here's what feels the same:
  • High volatility.  Three digit swings in the Dow have become the norm over the past three weeks.  On one day the Dow started down over 100 points and then finished up over 100 points for the day.
  • Ignoring potential issues.  This issues that cause dthe 2010, 2011 and 2012 corrections (EU sovereign debt default, debt ceiling brinkmanship, continuing QE, etc.) all still exist but investors don't appear to be concerned.  It seems the stock market is just one event away from a significant decline.
  • Low Fed concern.  The Fed doesn't see any major issue coming and is comfortable with the current level of intervention.
  • In 2008, I thought there might be a stock market decline, but not as devastating as the that occurred.  Similarly, I think the current correction was short and shallow and is already over.

    Maybe, I should starting thinking about taking more money out of the stock market. :-)

    For more on Reflections and Musings, check back every Saturday for a new segment.

    This is not financial or investing advice. Please consult a professional advisor.

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