At bottom, Wall Street is a gigantic gambling casino where investors and money managers predict the future and then place their bets. Those trying to justify Wall Street’s present nervousness are coming up with next to nothing.
Wall Street’s selloff last week has been blamed on everything but the real thing. The major indices lost more than four percent, with the Dow off nearly 10 percent since its recent high in early October.
The selloff in stocks on Tuesday gives investors another chance to buy stocks of excellent companies at a discount.
Wall Street jumped at the news from Fed Chairman Jerome Powell that interest rates were “just below” a neutral level.
While the Conference Board says the economy is slowing, Black Friday sales broke records and Cyber Monday sales are expected to do the same.
Stocks bounced higher on Wednesday following Tuesday’s relief rally, responding to another positive employment report from ADP/Moody’s: The economy notched a gain of 227,000 new jobs in October.
The national debt of the United States government jumped by $1.3 trillion during the fiscal year ending September 30, and the U.S. Treasury will issue new debt in the amount of $1.34 trillion.