An Echo of March

The market gave an echo of the bad times of last March this week,the worst weekly decline since that bottom.It had been foreseen for months.No market can keep ascending without pause or correction.Yet that is just what people have been expecting of earnings.When their hyper-expectations weren't met this week,they sold off.Other problems were the fear of Paul Volcker-inspired regulatory reform,which is odd,since the former chairman of the Federal Reserve is widely admired on Wall Street.It must be admiration from a distance.China contributed to the decline as well,ordering banks to stop lending so much,which threatens to create bubbles.Corrections occur when a tipping point is reached.All the worries that had been hidden reach a critical mass and come tumbling out together.In the end,it's a helpful development.Only when reality is admitted to can a market resume its upward trajectory.There are things out there that can hurt us,and now we are conscious of them,we can resume our financial journey through earnings season.