You Might Not realise How Awful This Market Is

The benchmark S&P 500 index is not really down by that much from its highs. The decline is on the order of 7%, which is significant, but not a massacre.

However, there are massacres happening in this market if you look at the right places, and especially if you look at some areas which are very economically sensitive.

Check out a chart of BP, which is getting hit by the double whammy of a slowing economy and falling oil.

We’re talking about a third of the company gone.

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Photo: Stockcharts.com

Or check out how severe the fall in the basic materials stocks have been.

chart

Photo: stockcharts.com

Not quite as bad overall, but pretty brutal lately.

Or check out Morgan Stanley, which was behaving really worrisome last year.

That’s a fall of 39% from the recent highs.

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Photo: stockcharts.com

For some international flavour, check out the 27% decline for Brazil over the last few months.

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Photo: stockcharts.com

Bottom line again: If you’re just looking at the headline S&P 500 decline, you’re missing some real bloodshed in some key parts of the overall picture.

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