I mentioned this to several people the last couple weeks and here it comes again. The Bond Yield Curve inverting is always going to be noticed by investors especially when some aspect of it stands out and Trumps trade war with China doesn't help but the main point here is that any negative news is always amplified in the stock market during summer vacation time because trading volume is low meaning there are few investors around to buy back stocks when others sell them off reacting to negative news. During most of the year you have opportunistic investors with their own contrarian angle on the market ready to swoop up stocks when they see negative reactions but in the summer especially August and September they are not there to buy them back so the stock continues to drop often precipitously. What is so amusing is that the news outlets, even market news outlets seem to want to remain oblivious to this in their "horrific" reporting of the market drop. Panic in the market opens up opportunities for large investor buy backs of course so what you get is just some more oligarchic playing of the less informed people. The factors mentioned above are serious of course but just keep this all in perspective relative to the time of year. You do understand there is a stock market crash coming at some point and it could be now? The things we have to put up with.
No comments :
Post a Comment