Around the Web: A look at market commentaries
The sell-off in stock markets around the world was a wake-up call for investors and a call to action for plenty of students of volatile markets and commentators on the Web. Here’s a selection of some of their views on this market and where it’s going.
How investors respond depends how seasoned they are, argues Market Risk. It’s a buying opportunity for invested with a long horizon and worrisome for those who bought within the last six months.
To others, investors, no matter how seasoned, look rattled. Peter Cohan’s hunch at blogginstocks.com is that “fear is feeding on itself” and “nobody seems to know exactly how big is the global wager on this Yen Carry Trade.” He reckons the Dow Jones industrials could fall 20 percent before ”fear is washed out of the global markets”.
Some are watching the bond markets, which — according to bondknowledge.com — are signalling that the outlook for the U.S. economy is less rosy than the Federal Reserve is currently anticipating. “Dont believe the goldilocks hype (economy is neither too hot nor too colddecent growth with no inflation). Listen to the bond market,” they argue.
Skeptical Speculator says “in a single day, China has reminded everyone that asset markets can be a risky place to be in” but they conclude that the “fundamental conditions have probably not changed dramatically. The large fall in the Chinese stock market is as much due to an over-extended market as anything else”