Talking about Don’t bet the ranch on a rebound

Full Story Don’t bet the ranch on a rebound

By Jim Jubak
Since this downturn began on May 10, the Dow Jones Industrial Average ($INDU) is down 8% as of the June 13 close, the Standard & Poor’s 500 ($INX) is down 7.5%, and the Nasdaq Composite ($COMPX) is down nearly 10.7%.

So when will this correction be over? It’s certainly a legitimate and important question. But at the moment, it’s the wrong question.

Instead, investors should be asking this: What are the odds that what has so far been an almost classical correction could turn into something worse — a prolonged downturn that puts an end to the long-term rally that now stretches back to March 2003?