Comments on: Making Sense of the Recent Market Volatility http://genxfinance.com/making-sense-of-the-recent-market-volatility/ Helping a unique generation achieve financial independence. Thu, 09 Feb 2012 03:12:52 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Asset Manager http://genxfinance.com/making-sense-of-the-recent-market-volatility/comment-page-1/#comment-23219 Asset Manager Wed, 12 Sep 2007 09:28:56 +0000 http://genxfinance.com/2007/09/10/making-sense-of-the-recent-market-volatility/#comment-23219 Enjoyed the article. One interesting situation that we looked at when covering the issue was a report by Trimtabs. One of their directors was quoted as saying redemptions in June and July from hedge funds "likely sparked the dislocation in the equity markets in the summer". In a bizzarre twist, it looks likely that nervous investors withdrawing money from funds actually contributed to the market decline. A self fulfilling prophecy if evr I have seen one.. Enjoyed the article. One interesting situation that we looked at when covering the issue was a report by Trimtabs. One of their directors was quoted as saying redemptions in June and July from hedge funds “likely sparked the dislocation in the equity markets in the summer”.

In a bizzarre twist, it looks likely that nervous investors withdrawing money from funds actually contributed to the market decline. A self fulfilling prophecy if evr I have seen one..

]]> By: Robert "The Credit Card Debt Guru" http://genxfinance.com/making-sense-of-the-recent-market-volatility/comment-page-1/#comment-23137 Robert "The Credit Card Debt Guru" Tue, 11 Sep 2007 18:58:48 +0000 http://genxfinance.com/2007/09/10/making-sense-of-the-recent-market-volatility/#comment-23137 Great analysis. Ultimately I agree that what the Fed does will have a greater impact on where this goes. Great analysis. Ultimately I agree that what the Fed does will have a greater impact on where this goes.

]]> By: Jeremy http://genxfinance.com/making-sense-of-the-recent-market-volatility/comment-page-1/#comment-23133 Jeremy Tue, 11 Sep 2007 18:20:55 +0000 http://genxfinance.com/2007/09/10/making-sense-of-the-recent-market-volatility/#comment-23133 David, I would guess that additional news on foreclosure numbers will continue to have an impact over the short-term, but in the end, what the Fed does with interest rates will have an equally important role. I think it is funny how right now, strong economic data can actually hurt the market because it reduces the chance that the Fed will cut rates. You would think that strong economic data would be good, but that isn't where the focus is, so everyone is hoping for a rate cut. That being said, I would expect the volatility to continue as various pieces of data come out, including foreclosure rates, but you'll see swings the other way as the Fed reacts. I think this will just continue to keep the market choppy as things like rate cuts, bailouts, or other measures are more or less just short-term band-aids on a much larger issue. David, I would guess that additional news on foreclosure numbers will continue to have an impact over the short-term, but in the end, what the Fed does with interest rates will have an equally important role.

I think it is funny how right now, strong economic data can actually hurt the market because it reduces the chance that the Fed will cut rates. You would think that strong economic data would be good, but that isn’t where the focus is, so everyone is hoping for a rate cut.

That being said, I would expect the volatility to continue as various pieces of data come out, including foreclosure rates, but you’ll see swings the other way as the Fed reacts. I think this will just continue to keep the market choppy as things like rate cuts, bailouts, or other measures are more or less just short-term band-aids on a much larger issue.

]]> By: David http://genxfinance.com/making-sense-of-the-recent-market-volatility/comment-page-1/#comment-23113 David Tue, 11 Sep 2007 15:04:21 +0000 http://genxfinance.com/2007/09/10/making-sense-of-the-recent-market-volatility/#comment-23113 Excellent analysis. Do you think an increase in foreclosures will bring the market further down in the short term? Or will action by the Fed be enough to counter that? Excellent analysis. Do you think an increase in foreclosures will bring the market further down in the short term? Or will action by the Fed be enough to counter that?

]]> By: Chief Family Officer http://genxfinance.com/making-sense-of-the-recent-market-volatility/comment-page-1/#comment-23002 Chief Family Officer Mon, 10 Sep 2007 19:22:59 +0000 http://genxfinance.com/2007/09/10/making-sense-of-the-recent-market-volatility/#comment-23002 Thanks! I thought this was a great, easy to understand explanation. Thanks! I thought this was a great, easy to understand explanation.

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