When the going gets tough, we must maintain perspective. The last three weeks have taken investors on a wild ride, but this is hardly the worst price action we've seen during 2014. The Dow, seen below, collapsed through its 50-day moving average, attempted a minor rebound which failed, then dropped to its current level right near the 200-day MA. During the sell-off back in Late July/early August, buyers stepped in right at the 200-day MA. It would be comforting to see that action play out again. Many investors use the 200-day as a benchmark for the overall direction of the stock market.
As things stand now the Industrials are only down about 4% from previous highs. That's certainly painful, but to put things in perspective, the Dow fell 7.2% at the beginning of this year, and was down 4.5% during the July/August malaise. I'm tempted to think that many fund managers who ... Log in or subscribe to continue reading.