Warning: That plunge in stocks is just the beginningSubmitted by meekandmild on Sun, 08/03/2014 - 18:36
NEW YORK (MarketWatch) — If the ups and downs of the past week have taught investors anything, it’s that there are cracks in this 5 1/2-year-old bull market.
The lesson for investors? Tread carefully.
Stocks took a tumble as a raft of economic data sparked fears the Federal Reserve could speed up its timetable for raising interest rates. The S&P 500 index SPX -0.29% took its biggest weekly hit in more than two years, losing 2.7%. The Dow Jones Industrial Average DJIA -0.42% , meanwhile, sliced through its 50-day moving average and erased the gains that had tenuously built up this year.
“It reminded people that the stock market can actually go down. It seems like a lot of people had forgotten,” said Mike O’Rourke, chief market strategist at JonesTrading.