Market To Bounce Back?
from the who-cares-about-fundamentals dept
Another optimistic viewpoint on why the stock market should bounce back. Unfortunately, I think it’s a weak argument. Most of the points are based on historical movements of the market, which I don’t think are all that useful. The market has no reason to follow history. I am still optimistic, but for more fundamental reasons (though the article does talk a little about interest rates).
Comments on “Market To Bounce Back?”
I'll have to agree with Mike on this one...
This is very weak reasoning – everything will work out because it’s done so in the past? I just finished reading Tom Clancy’s Debt of Honor, and though it is fiction, it spelled out the truth about stock markets: people try and predict what’s going to happen every day, but no one really knows what is going on. The market does what it wants to do, and it’ll never be predictable because it is based on people, and people are generally unpredictable – they do crazy things for stupid reasons that no one can predict. I do agree that resolution of the whole election fiasco will help the markets – they do hate uncertainty, as the author says – and yes, lower interest rates promote higher stock activity. But to say that it’ll get better just because it’s already been bad? It can always get worse.