The S&P500 is down around 3.50% right now with NASDAQ being off almost 5%.
The Yahoo Finance headline is “Why the Explosive Stock Market Rally is Crumbling”. What baloney that headline is–why is a 1 day move lower a cause for the use of ‘crumbling’ in a headline. I think that most everyone is somewhat welcoming of a move lower–I know I am.
On the other hand when I checked my accounts they were almost perfectly flat–some lower, some higher, but overall almost no movement. No bargains are being created in preferred stocks and baby bonds based on this common stock movement–this is normal. If common shares move down 1000 points or more in a day–with maybe consecutive days down we might see small bargains created in income issues–moves like this create bargains in income issues when folks decide to ‘throw the baby out with the bath water’ and that isn’t the case now.
I will continue to watch for bargains in quality income issues–but I will not be holding my breath waiting on a piddling 3-5% move lower in common stocks with interest rates on the 10 year at .62%.