What a fantastic afternoon. After threatening to break lower for much of the morning, stocks exploded to the upside upon the release of the Fed minutes from a meeting held three weeks ago. But today’s trading action obscured what has been the development of larger, more disconcerting trading pattern. For the stock market remains on an increasingly wild roller coaster ride that started several weeks ago. And in what has become an unfamiliar condition for those that hold publicly-traded equity in U.S. companies, the value of this ownership has actually been declining in value on net since the beginning of September. Even after today’s surge, the ongoing down drift in stocks represents the longest sustained correction in stocks since the fall of 2012. Despite this recent weakness, investors continue to have good reason for optimism, as fresh new highs remain well within reach. With that said, now is also not the time for complacency either, as the recent downtrend not only remains unbroken but may also represent the very beginning of what is to come over the next several years.
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