New York, NY…. Stocks continued their broad sell off today in most major indexes are now solidly in the red for the year. Uneasiness over China, the world economy, Fed rate increase fears and more drove the markets sharply lower for the second straight day.
Many stocks are now in correction territory which is down 10%. Most experts see a 10 percent correction as healthy improbable recent valuations. The big cloud hanging over the market is China. The Chinese government has been propping up the Chinese economy to compensate for lower GDP growth. If these measures stop working as they seem to be recently then the Chinese market could drop significantly dragging down the rest of the world economy.
These factors combined with the general general unease that some stocks are trading at high multiples created a stock market primed for a drop.