When I was in Kyoto recently, I climbed up multiple of stairs on my way to reach the Kiyomizudera temple. But on my way down, it was less tiring and it took me lesser time to reach the bottom. The stock market reacts the same way recently. It took a few months to gain momentum to reach the top only to give it back at a much faster rate in a few days time.

The recent market pullback was due to both fear of Fed ending stimulus as well as the weak China PMI index. For the former, this is probably not the first time you and I hear about this. We all know that the Fed is going to reduce its bond buying purchase later this year or early next year on condition that the economy becomes better. So economy better would translate to earnings better. The only jerk movement in the market currently is ...