Stock Slide: Correction,' Or aTrand?: Some Analysts Foresee Long, Sustained Fall
NEW YORK, March 28ÛÓWith the stock market continuing to fall from its January peak, a growing number of Wall Street analysts are warning customers that a major correction, if not a long-term market decline, is underway.</br></br>,' Those who have joined the pessimistsÛª camp say the reasons abound fqr their dim view of the market. They cite rising interest rates, inflationary expectations, a slowdown of mutual fund money pouring into stocks and worldwide political uncertainties ranging from the domestic Whitewater issue to the threat of trouble in Korea.</br></br>\ Since late January, when it neared tlie 4000 mark, the Dow Jones industrial average has fallen 216 points, or 5.4 percent, including 120 points last week and another 12 today [Details, Page D2], Other indexes have fallen as well. The Nasdaq stock market index, which tracks smaller companies, is off about 4 percent.</br></br>Some analysts are hoping this is no more than a long-awaited correction, a short-term decline in an otherwise rising market that helps to keep speculative fervor in check.</br></br>a long, sustained decline in stock pricesÛÓa full-fledged bear marketÛÓit would be bad for the economy, for federal regulators and for President Clinton, who has largely epjoyed the benefits of rising stock prices.