Is erratic market behaviour here to stay?

Benjamin Graham, Warren Buffett’s mentor, once described the global stock market as a manic-depressive person whose erratic behaviour changes daily. Let us call this person ‘Mr Market’. For the past eight months, Mr Market’s mood has been affected by external circumstances, such as negative macro-economic data and geopolitical tensions. But Mr Market’s mood has also been plagued by internal circumstances, such as tighter monetary policy.

Stock markets were caught completely off-guard by the sudden change in sentiment towards growth and inflation. Bond markets, conversely, seemed to have figured it out in advance, being much less volatile than stocks. Bond markets were already nervous about a looming recession and the US Federal Reserve Chair Jerome Powell’s speech in late August. In his speech, Powell provided an aggressive outlook for further interest-rate hikes in an attempt to tame inflation.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Market Watcher: US seems to be safest place in town[LISTEN] Sanlam Private Wealth's Thato Mashigo on the weaker rand boosting risk-off trading, where investors are placing their bets, macro market-moving factors & what the GDP data say about SA’s investing landscape. Download the podcast
Source: Moneyweb - 🏆 5. / 77 Read more »

Sporty-styled Haval H6 GT enters SA marketThe Chinese brand's first performance model has the looks and space but not the pace
Source: BDliveSA - 🏆 12. / 63 Read more »

WATCH: Market ReportBusiness Day TV speaks to Nesi Chetty from Stanlib
Source: BDliveSA - 🏆 12. / 63 Read more »

WATCH: Navigating the ETF market amid a high inflation environmentBusiness Day TV speaks to CoreShares MD Gareth Stobie
Source: BDliveSA - 🏆 12. / 63 Read more »

Market Watcher: The many faces of baby powder[MARKET WATCHER] davidshapiro61 on the blow to TigerBrand’s reputation & share price from the baby powder recall; Discovery's results not impressing the market; & TFG’s trading update, on the SAfm Market Update with FifiPeters Download the podcast
Source: Moneyweb - 🏆 5. / 77 Read more »

Fintech market resilient after a banner year in 2021 - IT-OnlineGlobal fintech investment declined from $111,2-billion in the second half of 2021(H221) to $107,8-billion in H122 but remained remarkably resilient compared to historical trends given the challenges affecting the broader investment market, including geopolitical uncertainty, growing inflation, and increasing interest rates. According to the H122 edition of KPMG’s Pulse of Fintech, the Asia-Pacific region saw […]
Source: ITOnlineSA - 🏆 16. / 63 Read more »