February has been brutal for stock markets.

One look at the charts confirms it all: We are in the midst of a substantial market correction.

From a high of 26,500 to current levels of 24,514.54, the Dow Jones Industrial Average is clearly in short-term bearish territory. It’s worth pointing out several things from the recent performance of the DJIA.

For starters, the 50-day moving average of 25,104.33 is now above the current level of the Dow Jones.

This indicates that the current performance is worse than the performance of the Dow Jones over the past 50 days. More importantly, the 200-day moving average of the Dow Jones Industrial Average remains well beneath the current level, at 22,781.48. This is more significant for investors. It shows that the long-term trends remain upbeat, despite the short-term volatility we are experiencing across the board.

Wilkins Finance investment guru, Charles S. Braun Esq. believes the fundamentals of the markets are structurally sound:

“…Now is a great time to be investing in equities markets. This may appear to be contrarian investment philosophy, but it is based on structurally sound principles. Value investments are achieved every time markets undergo a correction. The current drop in major bourses has not quite reached the 20% correction territory, but prices have dropped just enough to make it enticing for bargain hunters to pick up great stocks at a fraction of the price they would trading at.

We firmly believe that the correction in equities prices and the selloff that has facilitated a transfer of funds to bonds is warranted. For starters, this will give the Fed the breathing room it requires to prevent a rapid escalation in interest rates. Now that the Fed has witnessed a tapering of sentiment in stocks, there is no urgency to rush ahead with interest rate hikes. That being said, the CME Group which tracks the probability of Fed rate hikes believes that there is a 77% likelihood of a 25-basis point rate hike on Wednesday, 21 March 2018.”

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