This will be the last mention of media bias for the foreseeable future: The NYT wades into the market action last week, and spots numerous factors contributing to the volatility:

“Worries about the strength of the global recovery and proposals from Washington to clamp down on banks have sent fresh jitters through financial markets, prompting chatter among traders that stocks could be poised for that rare but alarming phenomenon: a correction…

Over three tense days last week, stocks tumbled nearly 5 percent; the Dow posted triple-digit losses on Wednesday, Thursday and Friday, ending the week at its lowest level since November.Some analysts believe the downward momentum may continue. They say the ingredients are there: a spike in volatility (up 55 percent in the three-day period last week, according to one gauge); activism from Washington (the Obama administration’s crusade against risky banks and uncertainty over the future of the Federal Reserve chairman, Ben S. Bernanke); and concerns over the slow pace of a global recovery (worries of a default in Greece and inflation in China).”

One cannot help but point out this is what balanced market reporting — as opposed to the front page laugher we saw in the WSJ last week — looks like.

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click for larger graphic

courtesy of NYT

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Previously:
WSJ Jumps the Shark (January 22, 2010)
http://www.ritholtz.com/blog/2010/01/wsj-jumps-the-shark

The WSJ Responds (January 22, 2010)
http://www.ritholtz.com/blog/2010/01/wsj-another-view/

What Balanced Market Reporting Looks Like (January 23, 2010)
http://www.ritholtz.com/blog/2010/01/what-balanced-market-reporting-looks-like-ft/

Source:
Volatility and Politics Are Feeding Fears of a Market Correction
JAVIER C. HERNANDEZ
NYT, January 24, 2010
http://www.nytimes.com/2010/01/25/business/25markets.html

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

7 Responses to “What’s Contributing to Market Volatility?”

  1. Machiavelli999 says:

    The problem is Barry that the laughter that you called out on the front page of the WSJ is winning.

    And when the inevitable equity correction comes, make no mistake, it will ALL be blamed on Obama. And some of your readers will agree.

  2. DeDude says:

    Amazing what you can do when you stop reporting in 15 sek. soundbites and 60 character headlines ;-)

  3. GreatWarrior says:

    BARRY! Please share your prescient market direction. Do you still think this is just a correction and market will continue to rally to the highs later?

    Thanks
    Sean

  4. Machiavelli999 says:

    Dick Bove is already blaming the equity correction on Obama before it has even happened:

    http://seekingalpha.com/article/184389-dick-bove-on-the-verge-of-a-politically-driven-equity-crash?source=hp_wc

  5. Mannwich says:

    @Machiavelli999: Barry and gang already discussed Dick Bove’s idiocy yesterday. He’s old news. He’s utterly pathetic.

  6. dps says:

    It’s quite simple. Jim Cramer predicted a big rally on the Rep. win in Mass. last week.

  7. tagyoureit says:

    So, when all said and done, will it be a -10% or a -25%?

    JASON DJ flipped the disk and cued up the B-side. Yo, watch the beat!