Makes No Sense

In the last week and half, the market has fallen over 5%. The financial media tell us that this wave of selling is because the economies in the emerging markets are slowing down and the Fed has announced that they are cutting back their bond buying activities. So let’s take a look at this from a rational perspective using the tools of fundamental analysis. Yes, the emerging markets and the Fed news are potentially negatives. How negative? Will earning drop across the board by 5%, 10%? We have...