Today is Wednesday.
Today, NYSE stocks “shot up” 600 points.
It’s being termed the “best day” since 2011.
One possible reason for today’s performance may be:
In addition to an oversold bounce, some analysts also attributed the gains to comments from the Fed’s William Dudley that a September rate hike looks “less compelling” and a strong durable-goods report.
Monday was termed the “worst day” since 2008.
And here’s another interesting point:
U.S. economy looks better than the stock market
The recent American stock market tumble stands in sharp contrast with sentiment about the U.S. economy.
Further evidence of that was received on Wednesday. The government said orders for big-ticket items like appliances and cars jumped by 2% in July from June. That was significantly more than economists had anticipated.
Clearly, you’d best buckle up for the continuous stock market rollercoaster ride. Because I don’t think we’ve seen the end of this at all. Down up down up down up.
This may be the start of a “new normal.”
On the other hand, don’t take a cavalier attitude. Don’t place all your rocks in stocks. Diversify. And moreover, be prepared for the Mysterians to step in at any time and kick the slats out of the stock market.
BZ
I don’t invest in the stock market, period. Rather, I lost my shirt owning diesel 4×4 pickups at a time no banks were willing to lend money even to credit worthy customers.
Still think the stock market is rigged. When George W. Bush managed to remove the firewall between commercial banks and investment banks, the stock market became a casino.
Have invested in mutual funds since 1985. Have never sold in any of the down markets from then till now. Strategy has served me well. All I can say is hold on and don’t panic. Panic selling in 1987 cost a lot of people their savings.
Not panicking, not selling. Not just yet. And clearly the US economy is stronger than that of China.
People thought China was a powerhouse. Not so.
Which is why China is pushing such a MASSIVE military buildup.
BZ