By David Bryan
Even though the market saw its biggest losses since 2016; were the Dow Jones Industrial Average fell some 665.75 % or -2.54%; moving under 26,000 on February 2, 2018; the stock market is resilient to the type of shocks that reverberated in 2008.
In the context, a 665.75 % point drop then; would not of garnered the same result now. In 2008 the market had all conditions for a perfect financial contagion. However, in 2018 analyst see last Friday’s drop as a minor correction and as a barometer for gauging the temperature for investor’s concerns about raising interest rates, inflation and a positive labour/wage sector.
The market is not sick as in 2008; but can be viewed as catching a slight infection; which is strongly believed will be flushed out with the medicine of a return, to the confidence of traders, seeking to invest – in the opportunity to buy stocks at a lower than available price index at the opening bell this week.
Continuation of a stellar year of investor confidence for the markets across the board is expected and will be reflected with gains throughout 2018.