Stock prices may have slid by 1,000 points recently, but really they are in a stage of normal correction, say investment gurus Jim Rogers and Marc Faber.
“The market was overbought, ahead of itself and due for a correction,” Faber, publisher of the Gloom, Boom & Doom report, tells Bloomberg.
While the Dow Jones Industrial Average erased more than $1 trillion in market value when it plunged as much as 9.2 percent, the index finished the day 3.2 percent lower.
“Being down 3 or 4 percent is a big, big number but that’s hardly panic, not yet,” Rogers tells Bloomberg.
Equities had a “normal correction” and were “overdue for a sell-off” after rallying from last year’s low, Rogers says.
Fears that Greece’s debt crisis will spread are beating up markets worldwide.
“I think the problem with the Athens situation is that it's incredibly fluid and it seems to change day by day,” David Jones, chief market strategist at IG Markets in London, tells CNN.
The European Union requires member nations to cap fiscal deficits to 3 percent of gross domestic product, while Greece has seen its deficit widen to over four times that figure.
Greek lawmakers have approved austerity measures needed to win approval for loans, prompting riots from angry citizens worried of losing social programs.
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