Stock Market Crash! Blog

It astonishes me how the poorly the stock market has been behaving recently. All of the recent angst has been related to fears about higher interest rates in the future. Specifically, what triggered this fear in Friday's market session, has been the wonderful employment report, which painted quite a rosy picture of recent job growth. What is highly ironic, however, is how much better the stock market faired during the time period labeled "the jobless recovery", in late 2003. Now that Wall Street is getting is wishes granted, stocks are getting creamed! This truly shows that the maket is ruled solely by emotions and not by hard fixed rules.

The problem is that the people doing all of the recent selling don't realize that the market doesn't crash because of a mere interest rate hike, or even several for that matter. The Fed is not exactly willing to pull away the proverbial "punch bowl" from the party yet. Especially considering the amount of effort it took to get that party started! Rising interest rates signal a strong economy. The Fed strives to move rates incrementally so as not to cause a disaster. Only after many rate hikes and extreme soaring of the CPI and PPI inflation levels, does the stock market start its downward trend.

This is my second post of my debut in the blogosphere. I am still in the process of touching up my main Stock Market Crash homepage and writing the related content. The articles I will write will span everything from historical market crashes to how to forecast and profit from these events.