The correction may have “peaked”

The talks of unwinding of yen carry trade and hedge fund positions, etc, plus concerns over US economic growth, made Dow plunged over 200 points at one time this morning, a typical change of market’s sentiment from hyper optimistic to hyper pessimistic . The US economy is actually doing ok, judged by this morning’s numbers:

Growth: After three sub-50 readings in four month, the ISM index in February rising to 52.3, from a January read of 49.3% which was the lowest since April 2003.

Inflation: The monthly inflation numbers picked up in January, but it is not cause for alarm. The core PCE deflator was up 0.3%. That was the same as the core CPI as already reported. It followed two straight 0.1% gains, however, and does not in itself represent a trend.

In the next few days, the market may stabilize as people realize that “soft landing” is still in cards.