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Market Psychology

rose-colored-coolaidrose-colored-coolaid
edited August 2007 in The Economy
Is anyone else noting that the massive stock movements are becoming boring? In February a 400 pt drop in the DOW was news for a week. Today the DOW lost almost 300 pts, and it's only just barely news.

Does anyone else feel like this massive volatility is just (ironically) lulling people into a sense of security?

Comments

  • redmondjpredmondjp
    Something happened in the market?

    </facetious>
  • perplexdperplexd
    It's still over the 2000 highs. I think the recent new highs convinced people we were due for a correction and they get the message that everything is fine because the new highs showed that in the long run, the market always goes up. Most people's money is in their 401(k) anyway.

    In other words, the takeaway for them is to hold on and don't sell until things get better.

    Bernanke said it would get better, right?
  • Lake Hills RenterLake Hills Renter
    Home from work today and as I was drinking my morning coffee, I flipped the TV past CNBC. Decided to watch for about 20 minutes to see what they were talking about these days, and every single thing out of anyone's mouth -- host or commentator -- was the same thing: how the Federal Reserve absolutely had to cut the federal funds rate, and then all the current market problems would disappear. Apparently the Fed has a magic bullet, so they just need to shoot it and all will be rosy once again.

    Nice to know our entire economy is dependent on one interest rate dropping a quarter/half a point. :roll:
  • EleuaEleua
    That "rate cut" talk is trash. I'd like to see a cut in this environment:

    JPY getting uppity.
    Economic expansion at 4% (even though it's total BS)
    Low unemployment (again, BS number)
    Inflation above target (actually, it's WAY above target)
    5% off the all time high in the DJI.

    If the maket doesn't get a 50 by 9/18, it will be a toboggan ride down hill. Even a 25 is as priced in as the next sunrise. If the FED holds steady, it will be absolutely FUGLY!
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