Chris Zaccarelli | Source | Chief Investment Officer at Independent Advisor Alliance

Any government interference within the capital markets, and changes that they want to make, investors are always a little bit cautious about, and clearly this is a change which would cause additional costs for investors.

We’ve had times when we dropped 20 percent and went into recession but this is an example, so far, where the market realizes a recession isn’t imminent, and going down 20 percent doesn’t make sense. It’s somewhat telling that we didn’t cross it, we didn’t officially enter into a bear market.

I think the drop in oil has more to do with the 1 million barrels worth of Iranian oil which wasn’t expected to be in the market, but now needs to be factored into the supply equation, because so many waivers were granted allowing firms to buy Iranian oil after all.