Headline: US stocks suffer one of worst weeks since financial crisis
S&P 500 closes up 1.5 per cent for 5.2 per cent weekly decline
FTSE All-World down 6.2 per cent this week and Eurofirst 300 index down 7.2 per cent
Investors withdraw record $30.6bn from global equity funds this week
Vix ‘fear’ gauge retreats to 29 from week’s high of 50
The gloomy picture of near economic irrationality is in need of the analgesic offered by the observation of this Market Technocrat, Mr. Kelly:
“I can see what caused the spark and what fuelled the fire, but the fundamentals remain solid,” said David Kelly, chief global strategist at JPMorgan Asset Management.
Mr. Harvey just offers an observational diagnosis:
“The equity market performed another stage dive while the crowd moved away,” observed Christopher Harvey, an analyst at Wells Fargo. “It wasn’t pretty.”
And an unidentified Goldman Sachs employee offers this analysis, awash in Market Techno-babble:
“The trading pattern suggests that markets may now be susceptible to both fundamental and technical factors, but most importantly uncertainty that could keep volatility elevated and leave us in a choppier trading pattern than we have seen in some time,” Goldman Sachs wrote in a note.
The IMF enters the melodrama, via the Financial Times reportage by committee:
The International Monetary Fund was as recently as late January hailing the “broadest synchronised global growth upsurge” since 2010, upgrading its forecasts for world economic growth for 2017, 2018 and 2019.
Then Mr. Dowding enters from stage right with his scolding, if not scalding, moralizing intervention:
Mark Dowding of fixed-income house BlueBay Asset Management said: “Greed was running unchecked in January and so markets were due a dose of reality, or else the party risked getting out of hand.”
Note that the utter absence of Trumpian political/economic Know-Nothingism, as a possible precipitating factor in this episode of ‘Market Irrationalism’. But the Financial Times’ coterie of Corporatist Apologists, its opinion scribblers, will confect the Party Line on this latest occurrence of Capitalism’s inherent instability. Once checked by the now discarded New Deal reform, and its permutations over political time, before the rise of the catastrophic Neo-Liberal mythology.