As I write this on November 26, the S&P 500 Index is down by about 4.6% for the week. The S&P 500 dropped 1.9% on November 21st and then dropped 2.2% on November 23rd. These are enormous daily drops.
Something has happened that has convinced the aggregate of market participants that the total value of every company represented in these indexes is suddenly worth about 4.6% less today than they were worth a week ago. What terrible news has led to this reduction in the value of these hundreds of firms?
Nothing concrete, really. Continue reading