Say goodbye to so-called ‘Trump Rally’

in history occurred in 1929 when the bellwether Dow Jones Index (DJI) went from 400 points to around 42 by 1932. Now that’s a drop. This week, the DJI has dropped only 4.6 per cent, rose and then dipped again.

So far, this is a “correction” of a wildly bullish situation with many moving parts. Taking the Dow Jones alone, it has gone in the past year from 19,962 to a peak of 26,616 when it declined then bounced around.

But what’s important is not to confuse the speed of a correction with a free fall. The fact is that markets were ridiculously high and that never continues forever. So why did this happen? I believe it was more sellers than buyers or profittaking by shareholders who, for a year, thought price hikes would never end until last week when a few decided to cash in. That led to more sellers than buyers and the selloff was launched.

Unfortunately, today’s selloffs slice value in minutes, as opposed to days or weeks, then result in equally accelerated