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Review of World Economics

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Review of World Economics

A weak China ISM number along with some negative reactions out of the emerging markets - caused from the winding down of QE - spooked the US stock market and triggered two strong DOWN days.

Time will tell if the pullback turns into a full fledged correction, which is usually classified as a decline of 10% or more. It's never a matter of "if" we'll have a pull-back or correction, but "when" we'll have one, and doing our best to avoid them.

Moreover, once a pullback or correction begins, we leverage our data to predict how deep it will be before finding support.

Even after watching charts each week, it's still very difficult to predict when a sudden sell-off will hit and what will trigger it.





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