The Market Correction Is Here: Now What?

  • Date: 28-Sep-2020
  • Source: Forbes
  • Sector:Economy
  • Country:GCC
  • Who else needs to know?

The Market Correction Is Here: Now What?

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getty

Okay, it's finally happened. The U.S. stock market is in correction territory with the major indexes having sold off by 10% or more from their peaks this year.

This development is not surprising considering how far the market advanced from the lows reached in late March. At the beginning of September, the S&P 500 index and the Nasdaq 100 index were up by 60% and 84%, respectively, with high flying tech stocks leading the advance.

FRED

In the wake of this surge, even the most bullish observers recognized that a market pull-back was likely, as the run-up far outpaced earnings and valuations became stretched.

The issue investors now face