The Return of Normal

“In bear markets, stocks return to their rightful owners.”
J.P. Morgan

Welcome to the “new normal” in regard to volatility (to the downside) when it comes to the stock market. Coincidentally, it bears a striking resemblance to the “old normal”. The steady increase in markets around the world, with no significant corrections over the last couple of years, is most definitely not how stock markets usually work. Welcome to reality where late last week the S&P 500 was off  from its highs by approximately 10%. Frankly, I have no idea (nor does anybody else!) if this correction will run its course quickly or will turn into a longer drawn out bear market.

Everything you need to know about market “crashes” on one easy to read recipe card.

strongly encourage you to click through to James Osborne’s excellent blog which puts these crazy, but very normal, markets into context:

Frankly, My Dear

 


Keith Thomson

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