For general discussion and debate. Possible talking point: Is the stock market rally over?
Friday was a bad day for stocks with all major indices losing several percentage points. Is this the beginning of a serious sell-off that could even test the March lows or just a much-needed correction after an historic move up?
From a more technical standpoint, is the reflation trade of shorting the dollar and buying commodities, in particular oil and gold, about to start a huge unwinding that will bring stocks with it? Has this entire runup in stocks and commodities way over-discounted any potential economic recovery given exploding budget deficits, tighter regulations, and the certainty of higher taxes in the future?
In sum, was this entire rally over-done, and reality is about to set in, or is it more likely that things at this time last year were not nearly as bad as what was advertised, and stocks now are better reflecting actual economic activity than they have in many months?
