The Dow drops 8 percent today. Huh?
All I've got now is questions.
Is there something the stock market didn't know about the deteriorating state of the nation's economy?
Should traders be surprised to wake up to poor retail sales figures? To poor conditions throughout the economy, according to the Fed's quarterly Beige Book?
Why does it a surprise them that the economy will take a long while to recover?
Something's going on here. The traders know what we know, they've seen the statistics that define our economic lives. There's nothing new to the misery that continues.
So why should stocks fall every day on every number that simply describes what we already knew?
I don't think logic can ever, ever describe the market's thinking on a particular day. It's just inscrutable.


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Comments
I agree totally.
Once the market moves, there are plenty of pundits who tell you why that happened. If they were any good, they'd tell us what's going to happen, in advance.
IMHO, here's what's going on: a)All news is bad in a bear market; b)All news is good in a bull market; c) Bear markets always have sharp rallies.
Posted by: Mark Wolfinger | October 15, 2008 5:27 PM