Guest Posted December 19, 2018 Share Posted December 19, 2018 19 minutes ago, lokisnow said: Did I miss something ? The Dow just dropped 500 points in twenty minutes, wiping out an otherwise positive day. wierd December in the markets, usually the “animal spirits “ of the traders means December traditionally irrationally outperforms which results in end the year positively, to have a dour December in an up economy is bizarre. What happened to the traders’ positive holiday animal spirits this December? The Fed hiked rates as expected, but dropped the number of anticipated rate hikes in 2019 from 3 to 2. This likely spooked both sides of investor prognosticators, one set who likely interpreted it as the Fed expecting an economic contraction in 2019, hence the reduction in expected hikes, and the other set who were hoping that the Fed would ease off rate hikes even more during 2019 and view the rising rates as being too much, too soon for the equity markets to bear. Both sides get spooked and you get a huge drop. Link to comment Share on other sites More sharing options...
This topic is now archived and is closed to further replies.