Financial markets have been acting like crazy. During the past few weeks, the ups and downs of the Street could be seen as symptoms of bipolar behavior from the standpoint of any psychologist. We have seen multiple established companies with swings in the stock price ranging 20%. This is sheer madness!
Analysts blame China and a soon-to-be hard landing of the Asian giant. Most likely, this errant behavior has been amplified by the algo trading so common these days. It’s hard to say if the unwinding of US’s QE is also having an impact but I believe so. Shifts in the monetary fluxes cannot be disregarded as sources of stock marketing scares.