Facts are more important than opinions in my world, where I
employ the former to grow the latter. A case in point: The U.S. Federal
Reserve’s cessation of purchases under the first two of its three formal
quantitative-easing programs was associated with significant periods of
adjustment in equity prices in all three major market-capitalization classes,
so the two consolidations related to the end of purchases under the last one of
these programs appear completely unsurprising to me.
During the first consolidation, the SPDR S&P 500
ETF (SPY) intraday declined to $181.92 Oct. 15 from $201.90 Sept. 19, a
decrease of -$19.98, or 9.90 percent. During the second (and continuing)
consolidation, SPY intraday dipped to $198.78 Monday from $208.47 Dec. 5, a
drop of -$9.69, or 4.65 percent. And the most significant thing to me is that
these two consolidations likely represent not the end but the beginning of the stock
market’s latest period of adjustment, as indicated in these three articles at Seeking
Alpha:
Meanwhile, I also had a couple of pieces of interest
published at the International Business
Times over the weekend, as follows:
As it turned out, of course, it was not Apollo Global
Management LLC (APO) but the privately held BC Partners Ltd. and its associates
that eventually landed PetSmart Inc. (PETM), as Reuters
later reported.
Related Reading
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