A quick mention in the USA Today
http://www.usatoday.com/money/markets/2010-05-13-volatilitymart13_ST_N.htm
Stock market
swings can be scary
things for investors
Updated 14m ago
By Adam Shell, USA TODAY
NEW YORK — Mr. Market sure has been suffering
from major mood swings lately. Volatility is back on
Wall Street, causing fear- and greed-induced
migraines — and what-do-I-do-now? moments —
for investors.
In the past three weeks investing in stocks has
resembled a roller coaster ride. Triple-digit moves
in the Dow Jones industrials nine of the past 12
trading days. A Wall Street fear gauge named “Vix”
doubling in a matter of days to levels not seen in a
year.
First, greed ruled. Then fear ruled — thanks to last
Thursday afternoon’s nearly 1,000-point Dow
plunge. Only to see greed make a comeback this
week.
Headlines have captured the insanity. One day they
are screaming warnings like Bailouts! Mini-Crash!
Fat-Finger Trades! Market Malfunction! Euro-Crash?
The next day they scream Market Rebounds!
And investors’ reaction? Do I get out? Do I get in? If I
got out, do I get back in? What gives? Is it 2008
again?
“Volatility, volatility, volatility,” is how Peter Greene,
managing director at Fusion Analytics Securities,
sums up the market’s recent manic-depressive state.
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The market plunged last week on an unusual trading
glitch on the nation’s stock exchanges and fears
that the debt crisis in Greece would infect other
European countries and crimp the global economic
recovery. This week the Dow has rebounded 5% on a
eurozone rescue.
We know volatility scares the pants off investors. But
what do these sharp swings mean, and how can
investors survive the assault on their emotions and
gut-wrenching swings in their portfolios?
Investors experience “volatility a little bit like they
do an ambulance speeding by,” says Woody Dorsey
of Market Semiotics, a behavioral finance firm. “It
really gets your attention. You see the flashing
lights. You pull over. You are scared. You don’t
know what’s going on.”