The NY Times reports that Stocks Plunge as Market Enters ‘Correction’ Territory.
The sell-off continued in Asia on Friday. Shanghai’s stock market was down about 4 percent midday, while shares in Hong Kong and Tokyo had fallen more than 3 percent. Futures contracts that track stocks in the United States traded erratically, suggesting that the markets on Friday [today] could be in for another day of uncertainty.
However, consider the history over the last 10 years. The accompanying graph showing Standard & Poor’s 500 from 2008 to present, swiped from the NY Times article, highlights (blue bars) those market drops of 10% or more. The market recovered in each case. So …
The market correction does not mean that the bull market in stocks — which have been roaring since March 2009 — is over. Markets also experienced a correction in early 2016 before shaking off their jitters and continuing to climb.
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