Retiring Early

Wednesday, February 07, 2007

"Stealth Correction"

I saw an analyst on CNBC yesterday that suggested that the market was undergoing a "stealth correction". I wish I remembered who said it, but does anyone have any idea what market symptoms might lead someone to believe that there is a "stealth correction" going on? ...or for that matter, even what a "stealth correction" is, as opposed to a consolidation? :)

mOOm, any ideas?



  • At 2/07/2007 8:34 PM, Blogger mOOm said…

    Really depends on the time frame to know what he might mean... if it is a longer period he could be referring to the effect of inflation so that though the Dow and SP500 total return index are at record highs, they are not above 2000 levels when inflation is taken into account. In the short run maybe he means that most stocks are down but because some big cap stocks are up the index is up? Or that the NDX is below the January high but the S&P and Dow are?

    Some ideas...

  • At 2/08/2007 6:14 AM, Blogger fin_indie said…

    moom: Thanks. I believe his comments were short- term in focus and broadly about the market. He was not calling out any particular sector. I can't for the life of me figure out what he was referring to and he did a horrible job explaining himself.

    Your point about "most stocks down, but a few large caps resulting in the index being up" is interesting, but the major US indexes are only up a couple of percentage points YTD -- nothing to write home about. You might consider that a basic consolidation, right?


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