The market is taking another out of control hit today. It’s a volatile market, some say. Others call it erratic. A couple of days ago it took a big hit on news that some banks were doing worse than expected. Wow, who would have suspected that? In spite of the euphoria of the inauguration and reassuring news from some sectors of the economy, the entire market fell like a rock. Then, for no really good reason, it rose the next day to recovery most of the loss. I guess the inauguration euphoria kicked in. Today, it’s another free-fall on news that Microsoft may cut 5,000 jobs. It’s hard to know exactly what is going on with the market because it appears to behave in totally irrational ways.
It reminds me of a grade school recess soccer game with thirty kids on each side all trying to chase a ball in uncontrolled pandemonium. But it’s not even that. The big time market traders who initiate these wild swings are nothing but hyperactive, amateur gamblers rushing about from rumor to rumor hoping to place their bets before someone else does with absolutely no idea of what game is being played. They would object, of course, after all, they have their MBAs and advance degrees in economics. I think that’s nothing but a thin cover for their ignorance. In the meantime, those of us who are relying on our investments to fund our retirements are getting pretty tired of being jerked around by people who treat our savings as if they were their own poker chips to play around with.
#1. I agree with you about the \”dodging about, gambling on rumor etc. and find that a very uncomfortable, but mostly true picture.#2. I hope that my account managers are using their cool heads and solid information in managing the next egg that is there:)
Yes, the stock market is reeling like a drunken dailor on a slippery deck, and the account managers seem to be reacting just emotionally, despite their finance degrees. I knew that my own retirement pension is half in the stock market, and is set on one arbitrarily chosen day each month for how much it will pay in the next month. This month the day was Jan. 20-Inauguration Day. I smugly thought, \”Good. There will be euphoria in a high tide which will raise all boats!\” Wrong! It was the worst day of the month. I lost hundreds for next month. Of course, the next day was OK. Too late. I feel like my retirement income is set in Las Vegas instead of New York!