Market Sell-off

A market sell-off is a pullback from a recent uptrend in the market. Usually analysts will say that a sell-off of less than 10% is a market correction and more than 10% would constitute a market crash. While the difference is negligible, a market correction is more orderly and normal, whereas a crash is more severe and has the signs of structurally breaking the trend in the market. No market moves in one direction without pullbacks and many investors view a market correction as a positive occurrence allowing them better prices to enter their positions.


By deciding on Thursday not to raise interest rates, the Federal Reserve gave the world the wrong message. How I interpreted the Fed’s lack of courage to act yesterday: “After keeping interest rates at zero for seven years, and having…

Two weeks ago, I wrote about how investors are exiting the stock market. That situation has now gotten worse. Investors, especially what is referred to as the “smart money,” are making a beeline for the stock market exit door. From…

A significant number of companies on the U.S. stock market continue to “engineer” their corporate earnings with stock buyback programs. Sadly, investors have become too complacent with this and remain overly optimistic. Beware! This is dangerous. Earnings Now Outright Misleading…

Over the past few months, I warned my readers the stock market had become a risky place to be. While I also suggested euphoria could bring the market higher than most thought possible—to the point of irrationality—the bubble has now…

One of the oldest and most reliable ways to assess the value of the stock market is to look at its price-to-earnings (P/E) multiple. This multiple measures how much investors are willing to pay for each dollar of earnings. P/E…

Bank stocks have been a hit in the market sell-off over the past few years. Many bank stocks are still selling at a discount to book value, even after this recent six-month increase in stock prices. Although many bank stocks…

As we just completed the December meeting of the Federal Reserve, the continued market sell-off accelerated. This was following the previous week’s European Summit, which was supposed to alleviate concerns about the eurozone. Neither the Fed nor the summit in…

— "Ahead of the Street" Column, by Mitchell Clark, B. Comm. The economic reality is certainly catching up with the stock market and investors aren't sure how to proceed. It was only a matter of time before the Main Street…

Black Monday appeared again, as the DOW fell as much as 800 points but recovered, and closed down 370 points or 3.58% on the day, breaking below key psychological support at 10,000. Across the board, selling was panicked, as investors…

The sea of red on my screen mirrored the broader market on Monday and, for a lot of these stocks, their sell-offs were worse than the main market averages. This is not surprising considering that most of these stocks are…

The markets are continuing to languish and are edging toward the downside after the four percent sell-off that occurred on the Dow last Tuesday. Since staging an unimpressive bounce of 52 points in the following session on February 28, 2007,…

When I look at companies to evaluate, one of the first things I do is examine their long-term charts. Companies that have strong long-term positive trends immediately catch my interest. Take a look at Harley-Davidson, Inc. (NYSE/HDI), for instance. The…