Okay, listen up. The stock market only does well when other areas are bad. Because if other areas are bad, interest rates stay low so the best way to make money is in the stock market which is basically a legal casino for investors.
So on Thursday, July 31, 2014, there was too much good news that might have prompted the Fed to raise interest rates.
Higher interest rates cause investors to leave stock and go into interest generating investments. The market dropped over 300 points because of people selling to move their money into cash. Are we good so far?
Now on Aug. 1, 2014, the job numbers came out. They showed weak job creation and an uptick in the unemployment rate.
The stock market immediately stabilized.
Coincidence? You decide.
Wayne A. White
