November 17, 2018

Welcome to the Bear Market

“So, is this selloff just a correction, offering a chance to buy cheap? That is certainly the easy, happy reaction. However, that view misses the key question: why would such an out-sized, temporary drop happen? If there is not a good reason for a short-term shakeout, then we are back to the concern that something large and untoward must be driving the selloff.

Judging from the latest news and more insightful reporting, there appears to be one big, bad cause: Slowing growth outlooks. Such slowdowns can have outsized effects on stocks as prices adjust for reduced fundamentals and reduced valuations. Magnifying those declines is the potential negative emotional effect, which increases if prices continue to drop.

To maintain a clear mind, focus on the key bear market indicators such as new lows

Back to the question of whether this is a bear market or a correction. One bear market characteristic, an item that can reveal a seriously negative environment is the widely followed list of 52-week stock price lows. Those are the stocks whose prices just fell below their previous low points, going back one year (today, that means from the end of October 2017).”

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JJ Best Of The Web

"You are being watched. Right now, cookies are tracking which websites you visit and what you click on while you’re there. Your smartphone is logging your location."

"The US placed sanctions on 17 Saudis on Thursday as punishment for their alleged involvement in the murder of Saudi journalist and US resident Jamal Khashoggi... according to experts, the move doesn’t go far enough to reprimand the kingdom."

"If the slow-motion crisis that is Gaza ever has a turning point, then this week’s deal between Prime Minister Benjamin Netanyahu’s government, or what’s left of it, and Hamas leaders, under siege, is what the turning would look like."

"Nicholas Parisi's new biography, 'Rod Serling: His Life, Work, and Imagination,' fails to present a complete picture of the legendary screenwriter who did his best work outside the TV show that made him famous."

"Nearly a year after the tax cut, economic growth has accelerated. Wage growth has not. Companies are buying back stock and business investment is a mixed bag."

"By shifting accents, Australian expatriates are seen to be shifting class and status, indicating a sense of superiority to those who remain in Australia. The quickly acquired faux-British accent in particular has been associated with pretension..."

"Denim, usually in the form of the humble pair of jeans, is arguably the world’s most popular fabric. Over the years, it’s been worn by everyone from supermodels to soccer moms."

"Capitalism disadvantages women along several axes. The dawn of the industrial revolution enshrined a division of labor that largely confined them to the domestic sphere."

"In the past five or so years, hosting a Thanksgiving meal among friends a week before the actual holiday has become a standard part of the celebration for many young adults."

"Are these business owners trying to keep out certain customers? What about children? Or people who are paid in cash, or others who, for whatever reason, can’t or won’t open a bank account..."

"Humanity is on the verge of a weighty achievement. On Friday, representatives of more than 60 nations will convene in Versailles, France, to approve a new definition for the kilogram."

"...the more modern form of the movement has its roots in late 19th-century Europe... The sole focus of some missions based in England and the U.S. was the conversion of the Jews to Christianity..."