The market is down again today and there are millions of people trying to figure out why. Some will tell you they know why and give you a plausible rationale. There may be bits of truth here and there but there is also an arbitrary nature too. If not arbitrary, then haphazard.
The market may be down because nobody in Washington - Obama, Benanke or Geitner - made a speech today pounding the drum for a brighter economic outlook.
It could be because oil prices have been slowly rising again as inventories are drawn down.
Perhaps it is just profit taking after a nine week 32% "bear market rally", which many have been saying we are experiencing.
This downturn could also be the result of a self fulfilling prophecy, since many investors were hoping it would drop at least a little so they would have an opportunity to get into the market after missing out over the past two months.
What if the stock market is down because the weather is improving and folks have other things to do, like shopping?
Maybe the powers above in the heavens flipped a giant coin and it was just our luck today would be a down day.
The more cynical among us might think that the market is just being manipulated by investment banks and hedge fund managers toward their own gains -- or even more cynical they just want to jerk us around for fun.
Before the day is done you will also hear about bank loans, stock sales and dilution, government spending, housing inventory, retail sales, more foreclosures, unemployment, health care worries, the Social Security dilemma and more. You probably can add a few more of your own.
Here is the most plausible reason the market is down today -- check off, all of the above!
Actually as I have been typing the market closed and the DJIA was down 184.22 to 8284.89; the NASDAQ was down 51.73 to 1664.19 and the S&P was down 24.44 to 883.91, about 2.5% on average for the group.
The market may be down because nobody in Washington - Obama, Benanke or Geitner - made a speech today pounding the drum for a brighter economic outlook.
It could be because oil prices have been slowly rising again as inventories are drawn down.
Perhaps it is just profit taking after a nine week 32% "bear market rally", which many have been saying we are experiencing.
This downturn could also be the result of a self fulfilling prophecy, since many investors were hoping it would drop at least a little so they would have an opportunity to get into the market after missing out over the past two months.
What if the stock market is down because the weather is improving and folks have other things to do, like shopping?
Maybe the powers above in the heavens flipped a giant coin and it was just our luck today would be a down day.
The more cynical among us might think that the market is just being manipulated by investment banks and hedge fund managers toward their own gains -- or even more cynical they just want to jerk us around for fun.
Before the day is done you will also hear about bank loans, stock sales and dilution, government spending, housing inventory, retail sales, more foreclosures, unemployment, health care worries, the Social Security dilemma and more. You probably can add a few more of your own.
Here is the most plausible reason the market is down today -- check off, all of the above!
Actually as I have been typing the market closed and the DJIA was down 184.22 to 8284.89; the NASDAQ was down 51.73 to 1664.19 and the S&P was down 24.44 to 883.91, about 2.5% on average for the group.
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