Why Are Stocks Down? - Real Time Insight

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Investors knew the taper was coming and yet stocks were hitting new highs up to 1709 in early August. Since then stocks have slowly dripped lower.

Perhaps it is just a classic consolidation. Perhaps it is more.

To understand what is likely to happen next we need to discuss the nature of this recent decline. Which of the following do you think best describes why stocks have been on the decline.


1) Classic 3-5% consolidation before getting ready to make new highs.

2) Stock correction of 5%+ before making new highs.

3) QE taper = higher rates = stocks less attractive = major gains over and stocks go sideways to down in the future.

4) Other.

Which do you think best describes where we are at? And then be sure to share your ratioinale as to why in the comments section below.  



SPDR-DJ IND AVG (DIA): ETF Research Reports

ISHARS-R 2000 (IWM): ETF Research Reports

NASDAQ-100 SHRS (QQQ): ETF Research Reports

SPDR-SP 500 TR (SPY): ETF Research Reports

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: DIA , IWM , QQQ , SPY

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