The market is undergoing a healthy 2% sell-off today.  In addition to a renewed plunge in short term treasury rates (likely related to a flight to quality following renewed credit concerns associated with several bank earnings results), higher energy prices and a few tepid earnings reports from some of the more economically sensitive companies likely have the markets thinking the “R” word again.  (Recession.)

Frankly, I’m not too concerned about a recession, at least at this point.  The companies that are seeing current softness (financials and late stage cyclicals) are entirely within the realm of what one would expect given the economic environment.  While not immune to the sell off, growth stocks seem to be holding their own, perhaps as folks see their relative earnings prospects in a slowing economy in a more positive light.

In any event, the markets have been up and to the right for a couple of months now and as such, a correction might be expected.  For the sentimental, perhaps this is just a nice way to commemorate the 1987 crash, which occurred twenty years ago to the day.