Earlier sell-offs involved an attempt to correct obviously excessive prices
The latest sell-off was about rethinking the basic assumption that the U.S. and world economies can continue to recover, buoyed by continuing Fed largesse.
At this point, the downdraft in U.S. stocks isn’t about the FANGs.
Real yields have been rising from their previous historic lows (chart)
I recommended Chopin’s piano preludes as good listening for a time when you felt the need to hit the panic button. (Such as now, probably.)
John Authers Bloomberg 24 september 2020
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