On today’s “Street Fighter,” Fusion IQ’s Barry Ritholtz and Barclays’ Michael Gapen talk about the market sell-off. They speak on Bloomberg Television’s “Street Smart.”


Nov. 7 (Bloomberg)

Category: Media, Video

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13 Responses to “Ritholtz: Sell-Off Is Wall Street’s `Hissy Fit’”

  1. Doug of North Texas says:

    I think it was even more coordinated than that. I am exercising on an elliptical at 3:25 PM EST and the market is recovering to about -2.3% or so to -1.83 % or so – a slow roll to higher values has occurred before when approaching the close from lower values early in the day.

    OOPS! Speaker Boehner to speak in 5 Minutes??? Wonder what that is about and why today? So I wander off to the weights, then return to the TV just before the close, which is now approaching -2.3% again. The TVs at the gym have Fox news and CNBC up side-by-side. So I figure the Speaker has wanted to make an impression with the weak market at his back.

    So we get the close – somehow FOX and CNBC both have queued up the headline “Is Obama bad for the markets?” with a, golly, list of self-appointed experts to opine in just this subject. Coincidence? You be the judge. In the face of 1st term stock market rises with Obama near the top of the list (FDR did better), how can they pass off this pre-arranged garbage as reporting or even coincidence?

    I can handle the torture of exercise, but Boehner, Fox and CNBC are beyond Ironman levels.

  2. LoupDLou says:

    Where can I get a pair of shoes like that @ 3:47-3:53?

  3. llsoftware says:

    The Bernanke print machine gave the impression to enough people that since there financial statements were improving that they should give Obama four more years. How long before this fake economic recovery gets torn end to end? Today was just one data point in a long overdue correction to the reality.

  4. Futuredome says:

    lol, Bernanke’s print machine, considering more electronic credit has been destroyed than created the last month, you got a problem with that.

    This “selloff” was weak, far weaker than the November 32 selloff.

  5. Iamthe50percent says:

    Greek Austerity, saving Europe? No, saving Europe’s bankers, while destroying Greece. The Vultures are eating Europe’s oldest civilization.

  6. readerOfTeaLeaves says:

    I am beyond weary of cowardly hysteria about ‘the fiscal cliff’.
    The gutlessness and fear has become ludicrous.

    It appears to be largely perpetuated by those who also believed Romney had it ‘in the bag’.
    Probably not a coincidence.

  7. denim says:

    Barry, is it a cliff or a black hole? A $290 per month ($3500 per household per year) increase in the average family’s tax withholding is going to require cancelling the order for a new, middle class priced car, nice clothes, computer driven gadgetry, etc. You will see retailers going bankrupt as well as car and car parts makers laying people off in the race to the bottom. Consumers are 70% of the economy…

    Going off the fiscal cliff means a tax hike for 90 percent of Americans.
    “Nearly 90 percent of Americans would face higher taxes next year if Congress lets the nation hurtle over the’“fiscal cliff,’ the year-end precipice of tax hikes and spending cuts that threatens to throw the nation back into recession. A study published Monday by the nonpartisan Tax Policy Center finds that taxes would go up by a collective $536 billion next year, or about $3,500 per household, reducing after-tax income by more than 6 percent — an ‘unprecedented tax increase.’” Lori Montgomery in The Washington Post.
    @ryanavent: Joe Biden warning that Republicans will literally push Americans off a cliff.

    http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/10/02/wonkbook-the-number-of-the-day-is-3446/

    As far as smart money goes, hissy fit or not, look at SPY puts and calls. Those are the insurance policies for the wise who don’t want to unload right away.

  8. romerjt says:

    Wall Street, especially the hedge funds, all back Romney. Romney loses. Somebody said, “elections have consequences”, oh yea, the winner. And yesterday there was a big sell off? BR got it right.

  9. Moss says:

    It dropped much more after his first election. Is it Obama’s bear market yet?

  10. ComradeAnon says:

    Barry, do you get to pick the counterpart when you’re on? Setting a portfolio based on one day? I need to send Bill McBride a nice check for including you on Calculated Risk.

  11. Frilton Miedman says:

    Yesterday was an excellent buying opportunity for me, that’s it.

    I know BR is calling for 20% correction sometime in the next 18 months, but yesterday just seemed too convenient, too predictable.

  12. Disinfectant says:

    Surprised by BR’s comments. Futures were flat in the morning when everyone knew the election results. Then two negative news items came out of Europe and the futures dropped about 1%. Then it just got worse during the day, so it’s not clear there was any causality from the election.

    Also, considering the “big picture” view that we are now in a bear market, I don’t know why you’d imply that market action was in some wrong (calling it a hissy fit). In a bear market, stocks are supposed to go down.

    ____

    BR: My snarkiness aside, 2 things:
    1: Futures were down strong late Tuesday night (tho Europe & Asia were trading slightly lower); 2nd, 52 week high on SPX is 1465 — were at 1390 — how can you declare 6% or so move a Bear market?

  13. Disinfectant says:

    BR: I’m talking about your call for a 20-30% market drop. 2% down days don’t need an explanation in a bear market.

    ~~~

    BR: The discussion on Bloomberg was not a call, it was a statement of fact: When cyclical bull markets end, they tend to correct 20-30%.

    Its a simple premise I don’t understand people’s problem with it . . .