Most meaningless market move yet

By Justin Fox | October 28, 2008 | +

Regular readers are well aware that Barbara and I really hate assigning deep meanings to daily stock market movements, and when we are pressed into doing so by our editors we usually respond by writing about volatility.

But today’s 889-point rise in the Dow really takes the cake. There is no plausible explanation for why the market just did that, other than that everybody is extremely confused right now, so pretty much anything can happen.

Related Topics: Economy & Policy

@TIMEBusiness

Latest on Business

Jobs June 1, 2012

The Bleak Unemployment Report: Is Europe to Blame?

For the first time in almost a year, the unemployment rate rose to 8.2% in May as the economic recovery appeared to not only slow but almost completely stall. And it gets worse.
From our Partners
The Jury Is Out on the EuroSlate

America To Long-Term Unemployed: Drop Dead: Seven And A Half ThingsHuffPost Business
Did Warren Buffett Just Save the Newspaper Industry?er Industry?Daily Finance
Mobile June 1, 2012

Smartphones of the Future: 6 Predictions

Future mobile devices will change the way you do business–in ways you probably can’t even imagine. Here are a few predictions.

That Anonymous Dude

the super bouncey ball went up…tomorrow the bouncey ball more likely to go down.
http://trueconservative.typepad.com/ Steve Roth

I didn’t know that you guys were so sensible that way. Thank you.

While I’m writing, I’d still really like to see some data and graphics on “our greatest export has been debt.” (IOW, our main export product is promises.) I don’t have the wherewithal to deconstruct the national accounts competently. Love to see it…

Especially over a long period, like since 1920 or before.

Thanks.

Steve
Justin Fox

@Steve Roth: I’ll work on that. Although I don’t think I can go all the way back to the 1920s.
pneogy

No dead cat bounce? No VIX and market bottoms? That’s no fun!
donthelibertariandemocrat

It’s less meaningless, than overdetermined.
Jim Johnson

No bear market goes straight down. Almost all are punctuated with violent moves up often 20% or more. Best reason I heard was asset allocation rebalancing by pensions and endowments that have to stick to their allocations according to their IPS and quarter ends in 3 days right? Also, the institutionalized short funds(ETFs) are forcing more violent moves.
dadfox

It’s almost November. We know that October is the really bad month. And, more seriously, I see that home sales are improving in California. Apparently someone has enough money to take advantage of some great bargains.
banzai7

If you believe:

A. The financial services industry has finished deleveraging and clearing overpriced assets.

B. The undeclared recession has peaked.

C. The current case of credit constipation is relaxing.

D. The hedge fund implosion is a myth.

E. The tsunami has finished washing up on global markets.

F. Businesses are performing much better than investors are willing to admit.

G. The current global debt/equity ratio fundamentally sound.

H. Equity investors are not an irrational school of fish.

I. Volatility has subsided…

By all means by stocks.
paul lukasiak

well there is always the “expected rate cut” coming from the Fed, which means that the stock market becomes a better place to put your money.

But my paranoid conspiracy theory is that Saudi Arabia, China, et al are converting their T-bills into cash, and buying up US Securities as a hedge against inflation — with the Paulson literally just printing money to “save” his Wall Street buddies, inflation is nearly inevitable — and getting out of the T-bill market before inflation hits (and buying securities whose values will increase with inflation) is a smart long term strategy.