Don't Blame Greece; Market Was 'Ripe for a Fall'

If Greek worries were the cause, gold wouldn't be soaring
By Nick McMaster,  Newser Staff
Posted May 6, 2010 5:36 PM CDT
People leave the New York Stock Exchange after the closing bell in New York, Thursday, May 6, 2010.   (AP Photo/Seth Wenig)

(Newser) – For months now, traders have suspected that the bullish market is heading for a big correction. We may have just seen step one, writes Mark Hulbert at MarketWatch. Lots of people are blaming Greek debt fears for today's turbulence, but they should instead look to the gold market. "If concerns about Greece were the real reason the stock market was falling, then gold would be falling too," he writes. Instead, it soared by $30 an ounce.

That "strengthens the theory that this market was simply ripe for a fall. If it hadn't been worries about Greek solvency playing the part of the straw that broke the camel's back, it would have been something else. A market that wants to fall will find a reason." Was today a blip? That depends on whether today's scary plunge "will convince enough otherwise bullish advisers to throw in the towel and go to cash."

My Take on This Story
Show results without voting  |