The Market is Up, The Market is Down

Panic and Euphoria, it never ends. So what to do?

It is always something. Lately it is the fears about a potential pandemic from the corona virus. Last time it was fears something about else, and most likely, next time it will be other fears about something entirely different.

There is no escaping the intense changeableness of the world we live in, and that includes our economic conditions. As long as there is capitalism, there will be volatility.

No Minimization
One cannot downplay the seriousness of the Covid-19 virus. As bad as things have sounded in the recent month, it likely will get worse before it gets better. Taking care of oneself and one’s loved ones are critical. Histories of past epidemics can give one pause.

No Guarantees
There are no guarantees. There is only the past to guide us, and our own rationality. Doing what is appropriate is the most we can do.

Looking to a Future
In the mean time, the future unfolds before us. Assuming things eventually stabilize and improve, one then looks at the present and its future.

The Market is The Market, Not Life
While the stock market is intrinsic to our world, it is not everything. The sun will rise and the sun will set regardless of stock prices.

There are those who thrive on fanning panic, and then there are those who seem to thrive on the panic induced by others. Neither postures are beneficial.

Who
What is helpful is to consider for a moment the causes of volatility. Here is a post about the causes of market volatility. Another way to look at it is that volatility is caused by those seeking an advantage over others.

Cool, and Keeping It
My opinion is that the majority of market volatility we have seen concerning Covid-19 is caused by fund managers attempting to edge out rivals. If fund managers (hedge funds, mutual funds, retirement funds, endowment funds, etc.) can show they somehow bested their competitors be earning more or losing less, then they feel they have succeeded. Do you want to play that game? I don’t and won’t play in that sandbox.

How do you handle reactions to recent market volatility? Comment here. 

The headline “Wall Street Lays An Egg” is from the October 30, 1929 issue of Variety. Wikipedia notes it is one of the most famous headlines to ever appear in the U.S. The opening sentence of the story says: “The most dramatic event in the financial history of America is the collapse of the New York Stock Market.” Image courtesy Archive.org.

The post The Market is Up, The Market is Down appeared first in Smile If You Dare.