After the Storm

The stock market has calmed down considerably today. The Dow has been up as much as 441 points. The S&P 500 is currently up 2.32%.

The rally today is different from yesterday’s selloff in that the “high beta” areas, tech in particular, are doing quite well. The Utility ETF (XLU) is down while the Tech ETF (XLK) is up more than 3%. Growth is well ahead of Value. Yesterday’s selloff was much broader.

While the market is calmer today, I urge investors to expect more volatility in the days ahead. There’s the reaction, then the counter-reaction, then the reaction to that. The big low often comes a little bit after the worst of the panic passes.

Posted by on August 25th, 2015 at 12:53 pm


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