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Anxiety grows that US stocks are overpriced

There are reasons to ask whether 10% drop in five days was a quick, effective slap on the wrist, or if the market is still too overactive.

US stocks fell 10 per cent from Aug 17 to 24. Out of the 29 corrections since 1950, only nine happened in five days or less.

OVER the five trading days between Aug 17 and 24, the US stock market dropped 10 per cent - the official definition of a correction, with similar or greater drops in other countries. The word "correction" puts a warm coloration on the harrowing decline, as if it were a sort of useful discipline...

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