The Wall Street Journal reports,“Now I remember what a correction feels like.”
That’s how Ron Florance, deputy chief investment officer at Wells Fargo Private Bank, titled his note to clients on Tuesday, which seems to sum up what a lot of investors are feeling after the tumultuous start to 2014.
The Dow Jones Industrial Average has fallen in eight of the past 11 trading sessions and has suffered seven triple-digit-point swings. The blue-chip average is down 6.8% for the year.
Even amid Tuesday’s 72-point rally, traders say they need to see more positive follow-through to believe the worst of the pullback is over. That’s why some are preparing for what could turn into an old-fashioned correction–Wall Street parlance for a 10% decline. It would be the first such drop since the summer of 2011.
Few are panicking, but reality is setting in that last year’s easy ride higher is officially over.
