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| Re: AP admits: Democrats really are the party of the rich (1234148) | |||
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Re: AP admits: Democrats really are the party of the rich |
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Posted by Dave on Fri Oct 17 10:33:13 2014, in response to Re: AP admits: Democrats really are the party of the rich, posted by bingbong on Fri Oct 17 08:04:28 2014. I managed a hedge fund for years. I know what I'm talking about when it comes to the stock market and don't have to prove anything. You, OTOH, know very little about most topics and nothing at all about market volatility.Sometimes volatility just happens. Markets have risen virtually uninterrupted for several years – at least since 2011 - leaving stocks potentially over-priced and valuations inflated in many cases. Volatility had all but disappeared from the investing landscape. Towards the end of summer the Fed began making it clear they are ready to start raising interest rates, probably in mid-2015, a move that will impact corporate earnings and ultimately stock markets. Factor into that the simultaneous rise of ISIS, the Ebola outbreak and recent concerns for global growth and investors have suddenly grown skittish. Investing is frequently driven by emotions rather than any rational decision making process. If something even a little bad happens it can lead to an exaggerated market reaction. Volatility has been at historic lows and is finally starting to revert to historic norms. I'm more concerned about falling oil prices. Should oil close much below $80 and stay there, drillers are going to scale back. That would mean frac sand companies scale back, unemployment in the oil fields goes up, and ultimately, less business for railroads, one of the engines (no pun intended) that has been driving the stock market. Put it all together and you have a recipe for even more volatility. |
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