Value Midcaps & Large Caps

[bbotcs]

I don't see this selloff as a scary mess. If you check the volume on many stocks, it is underwhelming. What I think we are seeing is people taking profits in stocks that have had a nice run this year. People are capitulating--true--but I think that they are saying, "Well, this topped at $20 and I paid $4, so at $13, I'm still making a nice profit. Better to sell and be safe than to watch the position go down farther."

Don't forget, too, that profit taking is very good for the U.S. Treasury. And the profits that come out of the market will make their way back in (after Uncle Sam gets his cut).

I'm not optimistic here, but I don't see this as another 2001.