In case you missed it the stock market lost about a 1000 points a few days ago — all in a matter of minutes.
It was in “free fall” — market traders were bailing left and right.
With the Greek Euro Debt crisis, serving as a back-drop — Stock Prices in rapid decline, was the last thing Institutional Fund managers wanted to see. Kind of makes you want to sell ‘before it’s too late’ too.
Many of them did.
But then almost magically, the stock market fall slowed, paused, and then begun a similarly rapid return. The bungee chord dynamic, reached its limit — and thankful — rebounded.
But what if next time, the Market gets spooked like that, and goes into a cascade of frenzied selling … what if the next time …
It just keeps falling ? say goodbye to those 401k and Pension funds [if you haven’t already, that is].