CIF - Junk Bonds Say It's Too Early To Fret
Because of the below-normal volatility in stocks over the past five years, save for sharp corrections that were few and far between, the recent sell-off in the S&P 500 from 2940 to 2710 has generated the usual worried calls from clients wondering if "the top is in." My answer is that it would be very unusual for the stock market to weaken further in a good earnings environment in the seasonally strong time of the year.
As to why the S&P 500 dropped so fast, there are several factors I discussed here previously, but suffice