By Dr. Paul Price of Market Shadows
Market Action was not as bad as media headlines suggested.
Media spokesmen love to spout statistics and were quick to note that the market experienced its first five-day losing streak of 2013.
A short-term chart of the SPY (S&P 500 ETF) looks like market losses were pretty drastic. Not mentioned was the SPY going ex-dividend for $0.838 per share on September 20. Dividend payouts typically coincide with share price declines.
The nominal loss drops to only -1.8% in total return on an adjusted basis. That is equivalent to a $10 stock losing about 18-cents over a week of trading. Not exactly a catastrophe.
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