Market Sell-Off Not Surprising Says CUNA Mutual Director
Yesterday's strange trading activity during the market's large sell-off is no surprise given the strong recoveries for most indexes as of late.
That's according to Scott Powell, CUNA Mutual Group general account, managing director. Powell said the recent sell-off of U.S. and international stocks precipitated by the ongoing Greek sovereign debt crisis, "is not surprising given the extremely strong recovery of 75% for most indexes since their lows from March 2009."
"We would recommend investors review their investment account allocations, but to not take the approach of 'sell now, ask questions later' across their longer-term holdings, as this can be quite damaging to longer-term values and returns," Powell said.
Meanwhile, the SEC and the Commodity Futures Trading Commission said they are working closely with the other financial regulators, as well as the exchanges, "to review the unusual trading activity that took place" yesterday.
"We are also working with the exchanges to take appropriate steps to protect investors pursuant to market rules," the agencies said. "We will make public the findings of our review along with recommendations for appropriate action."