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taper yahoo finance
Source: Yahoo Finance

 

 

 

Category: Media, Video

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.

6 Responses to “Taper Tantrum Reaction”

  1. patfla says:

    Seems fairly clear to me. People (investors) have been nervous about this market for some time. Overvalued, dependent on QE, etc and they think this is the time to take some profits.

  2. MayorQuimby says:

    http://finviz.com/futures_charts.ashx?t=ES&p=w1

    Man – what a hissy fit! Look where we are!

  3. fedwatcher says:

    Wrong Barry! It is so simple, margin debt at all-time high, cash in mutual funds very low, traders very leveraged, etc. and then China’s yield curve inverts and Ben hints at an end to QE and the IMF messes up and People are rioting in the streets of Turkey, Brazil, and other places. The confluences of these events resulted in one being the “straw that broke the camel’s back.” Which one? Who knows? It does not matter, but one of these straws did the trick.

    My guess (only a guess) is it was China and not Ben.

    It was a world-wide MARGIN CALL!

    Trillions of “money” just evaporated. Money that is created out of thin air can also disappear into thin air.

  4. [...] to discuss a problem that exists in the narrative form of market commentary, one that I hinted at last night but did not have the time to fully explore in our limited interview. It makes fine fodder for our [...]

  5. Livermore Shimervore says:

    panic creates value. value ignored creates future profit.

    The key is to know that not everything in the market has fair value. So panicking about the over-inflated is simply a natural and inevitable event — but it should not be feared, instead it should be expected like the day’s mail. Execution is another matter, the make or break of all winners and losers.

    While others are fixated on the fear, make sure to keep on eye on the few investments in the market that are fairly valued and have performed far above the averages in good times and bad. That’s the next elevator going up.