by Pater Tenebrarum, Acting-Man.com:
On The Nature of the Pullback
Why have stocks and high yield debt recently declined? The standard excuses trotted out by the financial press make very little sense. For instance, it is held that stocks have fallen due to rising geopolitical upheaval in Ukraine, Iraq and elsewhere (actually, the “elsewhere” situations, such as the falling apart of Libya are rarely mentioned, because they are overshadowed by the other two).
But this makes no sense when we consider that the market was perfectly happy to completely ignore both developments for months. Why should they matter now, if they haven’t previously? There is only a kernel of truth in these assertions insofar as “bad news” from these conflicts can serve as short term triggers for market weakness on a daily or even hourly basis. However, there is a difference between a trigger and a “reason”.
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