Wednesday, October 10, 2018

Two hugely consequential events...

Here at 4pm, contemplating two major events today.  One is man made and on paper and one is from nature and will negatively impact countless lives.  The equity market's sharp decline would be major news on any other day.  With Hurricane Michael ongoing, it could feel inconsequential.

First, the market decline seemed overdue.  Equities kept edging up despite multiple reasons for concern.  Today it was not just rising rates or a few disappointments in earnings.  It was not simply a rejection of tech's dominance.  It was, at least for a day, a panic of portfolio adjustment.  Is it possible that the weather's unpredictability, the rapid surprise of the overwhelming power of this storm, made investors in mass question the vulnerability of their investment portfolios.  That may be a stretch, just a thought.

We will simply watch as the storm progresses, as the television news will show us the same segments over and over again.  Once again reporters will be holding onto street signs, wading through water, and struggling to stay upright.  It seems like a right of passage for the profession.  At this point, it appears that the devastation could be widespread.

It does put market events into perspective.


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