Bad News is Good News?
Our economy has gone Orwellian!
Down is up. Black is white. Bad news is…good news?
That is our current economic climate, if you can believe it.
It’s true: the markets lately have been moving opposite the news. When the jobs report is bad, markets go up. When the economy shows a little momentum, they go down.
It makes about as much sense as a square wheel. Why is it happening? And why is the market getting more and more volatile?
Because the markets have become addicted to QE and low interest rates. They are still trying to find a new normal after QE3, and now there is all this talk of higher interest rates. The Federal Reserve’s whims on monetary policy have been determining the market’s success for far too long, when it should be the other way around…