Mike,
THis explains a lot of what's happening in the market. The large caps have been holding their own, but the rest of the market has been dropping. Value investors suffering. Good buys out there, but may still fall below current values. The market isn't buying based on fundamentals, but on the belief that the large caps are the only safe haven. All non-US equities being avoided (NH).
By GREG IP and AARON LUCCHETTI
Staff Reporters of THE WALL STREET JOURNAL
For thousands of stocks, the bear market has already arrived.
As of Tuesday night, the average New York Stock Exchange stock was down 24.3% from its 52-week high. That's the biggest such decline since 1990, the last official bear market, according to equity strategists at Salomon Smith Barney. (A bear market is typically defined as a 20% or greater decline in the Dow Jones Industrials.) More stocks have been making new lows than new highs most days since late May.
On the Nasdaq Stock Market, the average stock has declined an even more dramatic 35%. Indeed, fully 30% of Big Board stocks and 51% of Nasdaq stocks are down 30% or more from their 52-week highs.[snip]
FWIW,
Ron |
