The ghosts of 2007 are all around us

 

NEW YORK (Reuters) – There is no more mistletoe hanging above the markets.

The romance U.S. fund investors once had with the stock market was put to rest in 2018 when buy the dip turned into sell the rip.

For evidence, look no further than exchange-traded funds (ETFs), which hold baskets of stocks across the market and have been a primary buyer throughout this bull market.

In 2017, investors often added more cash to the funds when the performance sank. Stocks glided higher.

 

Dow falls to 14-month low, Nasdaq enters bear market, six of 11 S&P sectors are now more than 20% off of their most recent 52-week highs

Nasdaq enters bear market 

The Dow Jones Industrial Average fell 464.06 points to 22,859.6, bringing its two-day declines to more than 800 points and its 5-day losses to more than 1,700 points. The S&P 500 fell 1.5 percent to finish at 2,467.41 as technology stocks underperformed. The Nasdaq Composite fell 1.6 percent and closed at 6,528.41, briefly dipping into bear market territory amid big losses in Amazon and Apple. The Nasdaq is 19.7 percent below its recent high. Companies in the S&P 500 have lost a total of $2.39 trillion in market cap this month. The Cboe Volatility Index — one of the market’s best gauges of marketplace fear — rose above 30.


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