Selling turns panicky; Dow down more than 5%

|By:, SA News Editor

A modest continuation of last week's selloff has morphed into something way more, with the DJIA down 1.3K points one hour before the bell.

The S&P 500 is lower by 4.4%, and the Nasdaq by 3.4%.

Into this steps Ray Dalio. The hedge funder may have top-ticked the market on Jan. 23 when - holding court in Davos - he said the average Joe was going to feel pretty stupid for holding cash. With the Dow down about 2.5K points since, Dalio today says the selloff is typical late-cycle behavior.

The decline may seem sizable, but is hardly a blip on a long-term chart, he adds, and there's plenty of cash on the sidelines waiting to buy.

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