If the latest stock market sell-off stings more than prior ones, there may be a reason for it.
Mayflower Advisors’ Larry Glazer says it’s been so long since the last meaningful correction, the next one will play havoc with investors’ heads.
His comments came as the Dow was seeing its biggest weekly decline in more than two years. On Friday, it tumbled by 666 points or 2.5 percent. The index closed the week down 1,095 points.
“When you get that 10 percent correction for investors, which is really just a day in the park… it’s going to feel like 20 or 25 percent,” the portfolio manager said recently on CNBC’s “Futures Now.”
A textbook correction of 10 percent or more hasn’t sent stocks into a tailspin since August 2015.
If a 10 percent pullback were to hit the Dow right now, it would wipe out about 2552 points more, based on Friday’s close. Two years ago, a sell-off of the same magnitude would have cost the Dow nearly 1000 points less.
Glazer says he’s been fielding plenty of investor about rising volatility and recent market losses in the past few days.
“We had investors saying to us ‘Is this it? Is this the big one?’ So, investors are not conditioned,” he added.
