Have you heard journalists and commentators using the term "market crash?" Neither have we, and we wonder why not given the facts. Reuters reports today that British "blue-chips slumped ... as
investors bailed out of financials and oils and fretted over the
outlook for firms like Canary Wharf and Reuters. Heavyweight banks,
insurers and pension funds -- formerly
prime supporters of equities -- sold each others' stocks to move
deeper into the safety of cash and bonds, while oil giant BP sagged after a
downgrade of oil companies. Traders struggled to find buyers willing to
snap up bargain-value stocks ... ." On February 24, USA Today noted that in the past three years [3] target="_blank">the S&P 500 is down more than 40%. The Nasdaq composite has
plunged more than 70%. Most people who bought stocks five years ago are
sitting on losses -- and waiting for a good rally to get out. That's a trend
that will continue for years to come, if history is a guide." But, both Reuters
and USA Today and other economic reporters carefully avoid using the "C" word preferring to cast the market crash as "a terrific time to buy."