After two years of virtually uninterrupted gains, the stock market took a scary tumble in October. Opinions are highly divided on what this means.
The bulls think that the dip is a buying opportunity because the economy is strong and the Fed’s ongoing stimulus places a bottom on asset prices. The bears say that the economy is vulnerable to serious global challenges against which the protection that Fed policy supposedly provides will come short. The fight between the sides is closely contested, and investors are caught in the middle. Erring on the side of prudence may be the way to go. Read the full report
Written by Raul Elizaldeby