{"id":30801,"date":"2018-02-10T15:44:04","date_gmt":"2018-02-10T20:44:04","guid":{"rendered":"http:\/\/olduvai.ca\/?p=30801"},"modified":"2018-02-10T15:44:04","modified_gmt":"2018-02-10T20:44:04","slug":"what-kind-of-stock-market-purge-is-this","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=30801","title":{"rendered":"What Kind of Stock Market Purge Is This?"},"content":{"rendered":"
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What Kind of Stock Market Purge Is This? <\/a><\/h3>\n<\/div>\n
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Actions and Reactions<\/strong><\/p>\n

Down markets, like up markets, are both dazzling and delightful.\u00a0The shock and awe of near back-to-back 1,000 point Dow Jones Industrial Average (DJIA) free-falls is indeed spectacular.\u00a0There are many reasons to revel in it.\u00a0 Today we shall share a few. To begin, losing money in a multi-day stock market dump is no fun at all.\u00a0 We\u2019d rather get our teeth drilled by a dentist.\u00a0 Still, a rapid selloff has many positive qualities.<\/p>\n

\"\"<\/a>Memorable moments from the annals of dentistry [PT]<\/p>\n

For example, the days following a market correction are full of restoration and redemption.\u00a0 Like the prayer of Saint Francis of Assisi,\u00a0Tuesday\u2019s\u00a0567 point DJIA bounce brought hope where there was despair, light where there was darkness, and joy where there was sadness.\u00a0 President Trump even acknowledged<\/a>\u00a0that his powers over the stock market are less than omnipotent.<\/p>\n

From a practical standpoint, a market correction clarifies that we live in a world that is exacting and just, as opposed to a fabricated fantasy.\u00a0 A stock market purge demonstrates that the central planners haven\u2019t entirely broken the markets just yet.\u00a0 Markets still go both up and<\/em> down.\u00a0This important detail is always forgotten at the worst possible time.<\/p>\n

The stock market purge also clarifies that Fed actions provoke reactions. The Fed\u2019s rate raising and quantitative tightening efforts are having an effect.\u00a0 After pumping stock and credit markets up for the last decade they are now, by design, deflating them.\u00a0What a delicate and unnecessary game these central bankers play.<\/p>\n

\"\"<\/a>The tree month t-bill yield and total assets held by the Federal Reserve system \u2013 moving in opposite directions. Amazingly, many market participants seem to believe that when these data change direction, the stock market will remain unaffected. That is probably wishful thinking. [PT]<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

What Kind of Stock Market Purge Is This? Actions and Reactions Down markets, like up markets, are both dazzling and delightful.\u00a0The shock and awe of near back-to-back 1,000 point Dow Jones Industrial Average (DJIA) free-falls is indeed spectacular.\u00a0There are many reasons to revel in it.\u00a0 Today we shall share a few. To begin, losing money […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,11763,1138,18466],"class_list":["post-30801","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-mn-gordon","tag-stock-market","tag-stock-market-purge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30801"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30801\/revisions"}],"predecessor-version":[{"id":30802,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30801\/revisions\/30802"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}