Wednesday's vicious stock sell-off may have been painful to watch, but it ultimately could be just what the market needed.
Investors watching what ended up as an 832-point loss in the Dow Jones Industrial Average couldn't help but remember the frenzied correction that began in late January and never really abated until April. Multiple trading days looked a lot like Wednesday's action, with the blue chip dropping hundreds of points in a matter of minutes.
But that's where the comparison ends, said Jamie Cox, managing partner at Harris Financial Group.
"This was way different than February and March," Cox said of the sell-off that began over inflation fears, much the same as the current market condition. "In February, everything got shellacked. Even banks didn't get hit that bad today. It wasn't what you'd expect in a full-blown washout sell-out. To me, that was the most important piece, that this is not going to herald something worse."