The Dow was down only -0.16% on Monday. Sounds like a sleepy day for stocks, right?
WRONG!
The S&P 500 showed a bit more blemish at -0.49%. Then the pain parade really starts marching with:
-1.18% for Nasdaq
-1.30% for Russell 2000
-2.76% for Biotech Index (IBB)
This was certainly a Risk Off day where even the beloved Tesla lost nearly 4%. This is going to happen with a market that is probing to new highs. Every now and then there needs to be a gut check on valuations. After some excess gets squeezed out, the bull market will resume.
Word to the wise… Do keep a firmer eye on the valuations of your stocks going forward as those with excessive premiums will get punished the most in the end.
Best,
Steve Reitmeister ( aka Reity…pronounced “Righty” )
Executive Vice President
Zacks Investment Research
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