....................the daily goings-on in the stock market are more entertaining to me than important. This post from The Motley Fool seems, from the distance, accurate. Excerpt here:
Daily market prices are determined by computers in New Jersey fighting to be a billionth of a second closer to exchanges than other computers. Business values are determined by 7 billion people waking up every morning trying to better themselves. If you bet on the latter and laugh at the former, you've figured half this game out.
If this decline keeps up, it could be as bad as the 2011, 2010, and 2004 downturns that no one remembers or cares about anymore.
When no one knows what the economy or stock market will do next, people say there's high uncertainty. This is different from low uncertainty, when people think they know what the economy and stock market will do next, invariably followed by being wrong, which they blame on high uncertainty.
U.S. investors have $16 trillion in mutual funds. It sounds huge when they withdraw $20 billion, but it's a fraction of 1% of what's outstanding. Even during big downturns, "Nearly all investors do nothing; go about their day; couldn't care less about yuan devaluation" is the most accurate headline.
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