Are the Markets More Rational Than the Average Bear?

By Matthew Makowski Investors were spooked through most of October. At one point, the year’s market gains were entirely erased. Now, despite signals of recovery, a degree of caution is to be expected.

The darling FAANG stocks took it especially hard last month. Amazon (Nasdaq: AMZN) had almost $120 billion wiped off its trillion-dollar market cap in a matter of days. And shares in Google parent company Alphabet (Nasdaq: GOOG) fell sharply after a mixed third quarter earnings report.

Even a rosy third quarter earnings report couldn’t protect Netflix (Nasdaq: NFLX) from the bloodletting. The media company saw a 30% drop in share price over …read more

Source::