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The Case for Chaos in Trying to Pick Bottom of U.S. Equity Rout

  • `Wholesale panic' could bring relief to U.S. stocks: Minerd
  • Better-than-expected earnings could help market find bottom
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Market Turmoil: Are Investors Overreacting?

In a market bouncing up and down 2 percent a day, investor psychology is taking a beating in U.S. stocks. But nerves may need to fray further before the volatility abates.

For all of last week’s twists, measures of investor anxiety sit well below levels from the last selloff, when shares plunged 11 percent in August. Twice last week the Chicago Board Options Exchange Volatility Index jumped more than 10 percent in a day, yet it ended 34 percent below its summer high.