{"id":58739,"date":"2021-07-25T07:00:40","date_gmt":"2021-07-25T12:00:40","guid":{"rendered":"https:\/\/olduvai.ca\/?p=58739"},"modified":"2021-07-25T07:00:40","modified_gmt":"2021-07-25T12:00:40","slug":"market-volatility-is-troubling-but-this-is-the-real-problem","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=58739","title":{"rendered":"Market Volatility Is Troubling, But This Is the Real Problem"},"content":{"rendered":"
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Market Volatility Is Troubling, But This Is the Real Problem<\/a><\/h3>\n<\/div>\n<\/div>\n<\/section>\n
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\"Market<\/p>\n
Photo by\u00a0R\u00e9mi Boudousqui\u00e9<\/a><\/span><\/div>\n<\/div>\n

<\/a>
\nIf you were awake at all this week, you caught glimpses of the stock market drama. Maybe you tuned it out? Here\u2019s a quick recap:<\/p>\n

Monday<\/strong>. Huge sell-off, the worst one-day decline since October 2020.<\/p>\n

Tuesday<\/strong>: Big rebound recaptured 80% of Monday\u2019s losses.<\/p>\n

Wednesday<\/strong>: Rally continues, Monday\u2019s losses fully recouped.<\/p>\n

Thursday<\/strong>: Stocks rise a bit, ended the day up.<\/p>\n

Friday<\/strong>: All major indices up, near their record highs.<\/p>\n

And that\u2019s just the numbers\u2026 Financial media headlines were absolutely schizophrenic. We saw everything from \u201cDow Plunges on Covid Resurgence\u201d and \u201cSpeculators Flee Suddenly Volatile Market\u201d to \u201cWall Street Ends Higher, Powered by Strong Earnings, Economic Cheer.\u201d<\/p>\n

Economic cheer? Let\u2019s take a closer look at\u00a0that last article<\/a>\u2026<\/p>\n

It starts with the typical bullish\u00a0post hoc rationalization<\/a>\u00a0for the market\u2019s response: \u201crobust corporate earnings and renewed optimism about the U.S. economic recovery fueled investor risk appetite.\u201d<\/p>\n

Yay Wall Street!\u00a0<\/strong>Stocks tried to go down and failed, everything\u2019s all better. Move along, nothing to see here\u2026<\/p>\n

Amid all the hysteria, there were a few interesting tidbits: this\u00a0CNBC article<\/a>\u00a0and\u00a0another<\/a>\u00a0published on Monday both emphasized\u00a0market volatility<\/strong>. Both titles read like a PR firm\u2019s damage control efforts: \u201cDon\u2019t make this mistake,\u201d and \u201cvolatility can be a good thing.\u201d<\/p>\n

Don\u2019t be afraid of volatility! It\u2019s a good thing!<\/p>\n

While volatility can be troubling for investors, experts caution against any hasty selling when markets fall. In addition, slumping stock prices can be a prime buying opportunity that investors should take advantage of.<\/p><\/blockquote>\n

Volatility is a \u201cnormal part of the process of investing.\u201d And if your stocks go down, well, buy more of them!<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Market Volatility Is Troubling, But This Is the Real Problem Photo by\u00a0R\u00e9mi Boudousqui\u00e9 If you were awake at all this week, you caught glimpses of the stock market drama. Maybe you tuned it out? Here\u2019s a quick recap: Monday. Huge sell-off, the worst one-day decline since October 2020. Tuesday: Big rebound recaptured 80% of Monday\u2019s […]<\/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":[18769,302,1849],"class_list":["post-58739","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-fear","tag-financial-markets"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58739","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=58739"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58739\/revisions"}],"predecessor-version":[{"id":58740,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58739\/revisions\/58740"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=58739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=58739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=58739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}