Dorfman: Market Capitulation Looming Threat

In today's New York Sun, Dan Dorfman argues that market commentators, fixated by this week's Wall Street tumult, may be ignoring an even larger danger: market capitulation, a la 1987:

Lost in the intense focus on the current financial crisis is a major new market risk that appears to be developing — investor capitulation, a situation in which many investors, fed up with mounting losses, say enough is enough and throw in the towel. While such capitulation helps clear the air, over the short term it's often a forerunner of big declines in stock prices and even market crashes.

To bolster his argument, Mr.  read more »

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