Ten Percenters day at the market

That group of investors, like Ritholtz, who believe we get a ten percent correction, and that will hold for some time. They win today, lets see how long it holds.  I am a 30%, and I expected another couple of 1% loss days, only looking up toward the end of week. The issue here is how efficient is the market in pre-pricing events. Do the cash holding help corporations endure the emerging market drops? Are we efficient in dealing with another game of Congress? Have we covered the loose four trillion fin the Fed's account? What about the cold and drought swans, does the market see them?

When the market works, theory says, then the only things that happen are unexpected things. So traders work in a semi stable world, they price the world to account for known negatives, and we mostly get upward surprises.  The dichotomy is the known downward adjustment. New knowledge makes this happen, we find cheaper ways of containing  negatives; so past practices are downgraded. We are even getting better at that, bankruptcy. The information age overwhelms.