Investment: Market Turbulence and the Emotional Conundrum -- SPX
The graph of the S&P 500 at the current time of writing—I am using stocks as a proxy for ‘markets’ in general and the S&P 500 as a proxy for stocks—displays three sharp falls in the last half year on the same news complex. And it is a complex: a developing story in which each new chapter follows on with previously unsuspected but inexorable logic and widening frame of reference— unsuspected in this case even by the vast majority of inside players. Experienced pros are undergoing progressive disconcertment at the sheer scale of the effects of small causes, and powerful CEOs are losing their jobs. By the end of this story, not quite as many employees of financial institutions will have been fired as low-income families and/or topof-market entrants will have lost their houses, but they will; financial institutions’ profits will have been massacred, and their credit ratings decimated.
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