In the name of volatility by Barbora Misakova

We are sometimes too trusting. Once something good happened to us and we just expect that it is going to be like this permanently. Crisis on the market has stood with us for a long time now, and everyone would be more than grateful if it just goes away. And that’s the problem. When we want something too much, then every single (even very little and actually very weak) ray of light is seen as the clear evidence of turning our dream into reality. After a very long and bad period of falling and decreasing indexes on the Wall Street very optimistic ones would believe that better times beckon for us. Last time, when Dow Jones industrials fall on 380 points, this time we could say that situation improved a bit, and they are higher - on 400 points. Even though this promising change came so unexpectedly, we shouldn’t rely on it. On the other hand analysts warn there is very little possibility this gain will hold, and we should look at it as a sign of economic volatility.
These optimistic (for a while) changes are connected also with The Standard & Poor’s 500 index which rose 4.25 percent or Nadsaq composite index which increased 5.49 percent. So credit markets look like they were performing and working better – increasing indexes, various ways of financial support of the banks on government’s part and so on – point on slowly improving situation. But the truth is that credit markets are not operating normally. What is the point of credit markets? Working with credit! But investors are still afraid, and every single investment is considered twice. They are looking for safety and if there is just a little possibility it will go wrong, they are not investing at all. Everyone is too careful and lot of markets is still paralyzed, what is also a reason why some of professional investors were forced to turn to the stock market. Some indexes are increasing some others are declining, and while there is no security, markets will work in the name of volatility.


related story: http://news.yahoo.com/s/ap/20081016/ap_on_bi_st_ma_re/wall_street;_ylt=AtyItAw_xzzARdOfssG6x_us0NUE

by Barbora Misakova for PocketNews (http://pocketnews.tv)

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