ASX now in a correction for the first time since 2015

Discussion in 'Sharemarket News & Market Analysis' started by Redwing, 25th Nov, 2018.

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  1. Redwing

    Redwing Well-Known Member

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    ASX now in a correction for the first time since 2015

    A per cent here, a few per cent there and soon enough you're back in correction territory.

    To little fanfare, Australia's benchmark ASX200 this week tumbled down below the 10 per cent peak-to-trough line, condemning it to its first correction since 2015.

    It took the ASX more than two-and-a-half years — April 2015 to December 2017 — to clamber back out the last one.

    The sell-off earlier this year didn't pass "correction" muster. While dramatic and headline grabbing, the market fell little more than 6 per cent from its January peak to the April bottom.

    Over in the US, Wall Street has just slipped into correction mode, again.

    It's the second 10 per cent-plus funk the US has tumbled into this year. All up, it has been in correction mode for nine months since January.
     
  2. SatayKing

    SatayKing Well-Known Member

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    So who decided that a "correction" is to be 10%. Why not 5% or 15%? I suppose it's the nature of the beast, ie us, we gotta make sense of something by defining it.

    Maybe it's simply normalisation although defining normal can be fraught with difficulty

    PS: I'm just a guilty. I think self needs a drink.
     
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  3. Redwing

    Redwing Well-Known Member

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  4. SatayKing

    SatayKing Well-Known Member

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    I'm absolutely livid. How dare they write the article which I haven't! Then coincidences happen surprisingly often.

    Actually, the concept did come up during conversations I've had with an FP over many years. One smart dude. Honours in economics. Has a knack of imparting the oddities in people's behaviour and how it can cause them to make decisions to their own detriment.

    Certainly assisted me in distancing myself from me when investing funds.
     
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  5. Redwing

    Redwing Well-Known Member

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  6. Redwing

    Redwing Well-Known Member

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    If you are still accumulating as a long term investor this recent fall would be welcomed as a buying opportunity

    There was an old bull and a young bull standing at the top of a hill overlooking a paddock of gorgeous young heifers. The young bull said, "Let's charge down the hill, knock over that fence and service one of those heifers each". The old bull wisely replied, "Why don't we meander down the hill, open the gate, take a sip at the water trough and then service ALL of those heifers?"

    Foundations laid now bear fruit later :D

    [​IMG]
     
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  7. Pleep

    Pleep Well-Known Member

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    Took a picture of this from a Shane Oliver economic update I attended. Hope it comes out alright, as it makes for some funny reading. Showing various calls of imminent collapse over last 6 years.
    Points out that some market “experts” give it a crack almost every year or so to say the Armageddon is nigh! Won’t they be lauded when they finally get it right!
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