The straw that broke the camel's back

Any number of "reasons" were given for the sharp stock market decline this week, with a special emphasis on trying to identify the "trigger." Was it the stock market in China? Was it Greenspan and his so-called "warning" about the possibility of a recession by the end of the year? Was it the weak durable goods orders report? Was it continued weakness in the housing sector? Was it subprime lending? Was it general anxiety about the economy? Etc. The answer is basically "all of the above", in that levels of anxiety have been building up for some time.

Trying to identify which recent event was the specific "trigger" is a waste of time and energy. There was no single trigger event. The totality of the news items earlier in the week were together the "straw" that broke the camel's back. There were simply too many "facts" for the average trader or speculator or money manager to keep any of it straight and they simply threw up their hands and threw in the towel.

But, not to worry, things will get sorted out in the coming days and weeks, and traders and speculators and money managers will be back in force.

For the average, true investor all of this anxiety should be ignored and maximum energy should be focused on true economic and business fundamantals, and not the "stories" coming out of Wall Street and its so-called "professionals."

To repeat: The sky is not falling.

-- Jack Krupansky