MSNBC opines that the recent massive stock sell-off reflects the panic that dominates the small investor scene. If truly irrational move, this panic might indicate that this is also a good time to invest.
Thursday’s big sell-off, which saw the Dow Jones industrial average move by triple digits for the ninth time this month, was the latest evidence of a crisis mentality that has taken hold on global financial markets, turning the usually quiet month of August into a nail-biter for small investors. A lot them have just one word for their broker: “Sell.”
“You’re talking about money exiting the market en masse and it’s completely wanting to get out stocks agnostic of sector,” said Art Hogan, a managing director at Lazard Capital Markets. “What we’re having right now is panic selling.”
