You must be sick of me talking about the overdue correction but it looked like it had finally arrived, after Friday’s reaction to the Dow’s 264-point sell off. Locally, the 68.8 point dive means we’re now lower on the S&P/ASX 200 index than we were when we kicked off 2014!
I wrote the above paragraph late yesterday. At 6 am this morning the Dow was up, wait for it, 167 points! Yep, volatility is back and it looks like the Yanks haven’t given up on dip buying.
Helping US stocks was the jump in Q2 economic growth from 4.2% to 4.6%, showing my faith in the US recovery is not misplaced. Also, consumer confidence went to a 14-month high, going from 82.5 to 84.6 on the Reuters/Uni of Michigan survey.