1 Answers: General question on volatility
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!