Readers continue to react to stock market gyrations:
I watched Mad Money with Jim Kramer last night. He blamed the blowup on VIX (volatility index funds). Sounded to me like total vapor ware. They make money not by buying real stocks, but by buying VIX ETFs. Basically betting on volatility of stock trading.
Maybe it’s like popcorn volatility. The stock market crashes so I have popcorn more often (emotional eating) and I figure many other people do the same thing. This creates a greater demand for popcorn. So I should buy popcorn stock.
Makes sense. I’ll mention that to my financial advisor. There are days when I wonder if the stock market is ever used for its original purpose. Another:
Wild stock market drops don’t just hurt the big money wall street types (when they even do that, since many are hedged or short, etc.). A lot of small people have savings, retirements, etc. in the market, including me.
Roughly 50% of Americans are thought to have money in the stock market, and so we’re all riding the waves. Thing is, since the Great Recession we hadn’t seen a correction, so those investors who started since then haven’t had the visceral reaction of watching 10% – or more – of their investment funds disappear. The first time that happens can be quite disturbing, especially if you (generically speaking) didn’t follow the general rule of investing only money that you won’t need in 5 years.
Yesterday? The Dow was all over the place, but closed up 1.38% for the day.
