The Sky Isn't Falling (Again)

Contrary to popular belief, the US economy is not failing. Nor is the world economy.

Therefore when the market is more than 4 standard deviations below its 2 year moving average [go to Yahoo! finance and graph an index, add Bollinger Bands for the 499 day period with 4 standard deviations, and you'll see that we're below the bottom line) it may be a GOOD TIME TO BUY [my guess, and it's just a guess, is that the S&P 500 sees an intraday low of 768 to 825 which implies downside of 8 to 15% from here -- however during bottoming periods like this the "bottom" can be very short -- sometimes less than an hour -- so hitting "the bottom" is unachievable].

PS: High yield bond spreads to treasuries are at an all time high. Unless defaults are far worse (or recoveries far less, or both) than at any time since the market was created in the mid 1970's then now is probably a terrific time to buy junk bonds.

Many happy returns.