Is This Stock Market Sell-Off The Real Deal?
— February 6, 2018
By Roy C. Smith
Is this the bursting of an over-priced stock market bubble or just an overdue but sharp correction to a fundamentally healthy economy?
Periods of sharp stock market declines can set off panics that can spread to stocks in other countries and to other asset classes, including those not normally correlated with stocks. If the sell-offs are powerful enough, they can generate enough uncertainty in the real economy to cause recessions, as they did in 1990, 2000 and 2008.
Is this one, one of those?
Read the full article as published by Financial News.
Roy C. Smith is the former Kenneth G. Langone Professor of Entrepreneurship and Finance and is an Emeritus Professor of Management Practice