1 Answers: General question on volatility

Question

I understand this is a broad, deep, and nuanced topic; but why has the market suddenly started knee-jerking again the past 90 days?

The beginning of 2018 marked the return of volatility after the tax cuts were passed, but through the summer the market didn’t react at all to sensationalist Trump-admin scandals, new rounds of tariffs, or geopolitical strife.

But for some reason – seemingly out of nowhere – the last interest rate hike made the market hypersensitive to all of these things.

What is going on? There doesn’t appear to be any consistent or rational reason for the swings we’ve been seeing the past few weeks – even prior to the mid-terms.

Thanks in advance!

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Anonymous 8 months 1 Answer 86 views 0

Answer ( 1 )

  1. We are almost certainly heading into a bear market it can not bull run continually. What goes up must come down and more than anything what we are experiencing is case where the market has reached it’s height and only dumb money is still moving in. Smart money in beginning to cash out and the deck of cards will come tumbling down.

    I shouldn’t worry though. Wait a while. Put your money in t-bills and soon you will have your chance to invest in the stocks when they are in a valley and buy, hold and profit.

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