This is how fragile the economy is right now

[verdo]

This is a short article from Zero Hedge

http://www.zerohedge.com/print/473772

I noticed Gold was down a bit today so I looked around for some news, and surprise surprise, a simple rumor that an article was going to be issued by Hilsenrath that QE would stop caused stocks, Treasuries and gold to fall





I mean really? A rumor of just an article that might hint to an end of QE caused the S&P to drop this much? As a matter of fact, the tweet where this rumor came from apparently didn't even say QE could stop, but might "taper off." Seriously, anyone who holds out in stocks during a known period of weakness at this point (May - August ---> As the saying goes, sell in may and go away) is one brave lad/lass. If that's all it takes to shake the market downwards, then there truly are no real fundamentals pushing this market forward. One random tweet is able to move multiple markets. What am I missing here?

[lektrode]

Re: This is how fragile the economy is right now

guess its like a heroin addict and the anticipation of the next fix and the higher dosage nec to keep the 'high' going, eh?

[GRG55]

Re: This is how fragile the economy is right now

Just a sign of the times...not a commentary on markets so much as a commentary on human behaviour. How many years has it been since the RIM Blackberry was given the affectionate sobriquet "Crackberry", and every restaurant in the business district was filled with people thumbing away absorbed in those little devices for fear they might miss something in an email? Now we are overloaded with "information" and react to every stimuli...

[don]

Re: This is how fragile the economy is right now

guess its like a heroin addict and the anticipation of the next fix and the higher dosage nec to keep the 'high' going, eh?

No texting while skiing

trees, ya know . . .

[gwynedd1]

Re: This is how fragile the economy is right now

This is a short article from Zero Hedge

http://www.zerohedge.com/print/473772

I noticed Gold was down a bit today so I looked around for some news, and surprise surprise, a simple rumor that an article was going to be issued by Hilsenrath that QE would stop caused stocks, Treasuries and gold to fall





I mean really? A rumor of just an article that might hint to an end of QE caused the S&P to drop this much? As a matter of fact, the tweet where this rumor came from apparently didn't even say QE could stop, but might "taper off." Seriously, anyone who holds out in stocks during a known period of weakness at this point (May - August ---> As the saying goes, sell in may and go away) is one brave lad/lass. If that's all it takes to shake the market downwards, then there truly are no real fundamentals pushing this market forward. One random tweet is able to move multiple markets. What am I missing here?

Used to be buy the rumor and sell the news. However now everyone knows that. So now you have to buy on the anticipated innuendo and sell on a more substantial rumor.

[verdo]

Re: This is how fragile the economy is right now

Just a sign of the times...not a commentary on markets so much as a commentary on human behaviour. How many years has it been since the RIM Blackberry was given the affectionate sobriquet "Crackberry", and every restaurant in the business district was filled with people thumbing away absorbed in those little devices for fear they might miss something in an email? Now we are overloaded with "information" and react to every stimuli...

I'm just surprised that it had an effect over three different asset classes. I mean, if human behavior is filled with this much fear and lack of conviction, that does say something about the wisdom of investing in the markets at this time. The fact that we are entering a period of known weakness for stocks only compounds the issue imo.

[photon555]

Re: This is how fragile the economy is right now

I don't believe the FedGov or the Fed can afford a down Market again. Whatever is necessary will be done to keep it from crashing. The Market is now the Potemkin Village in the concentration camp that the real, Main Street economy has become imprisoned in. The appearance of prosperity must be maintained at all costs.

[GRG55]

Re: This is how fragile the economy is right now

I don't believe the FedGov or the Fed can afford a down Market again. Whatever is necessary will be done to keep it from crashing. The Market is now the Potemkin Village in the concentration camp that the real, Main Street economy has become imprisoned in. The appearance of prosperity must be maintained at all costs.

I recall hearing the same thing about housing..."they" won't let it crash...

[Chris Coles]

Re: This is how fragile the economy is right now

I recall hearing the same thing about housing..."they" won't let it crash...

This morning on the Andrew Marr show, BBC 1 TV prime time Sunday morning, a UK member of Parliament talking avidly about the need to get people to use a new government grant scheme to boost property sales.