Of course you can. Because the people trading in that market are still humans, and have the same human responses as people have had since markets started trading. This is a psychological effect, not a purely economic effect. If the Boomers and older Gen-X get spooked and decide to change the ratio of bonds to stocks in their 401K accounts the market is going to to shift. You can argue economic theory to a scared 60 year old all day long and it just isn't going to matter. That is why I said it is President Trump's big test. If people calm down then we go back to growth. If the CNN doom merchants win then we are going to bounce up and then head back down again. Economic fundamentals only kick in once the psychological panic has passed.
This isn't anything like prior economies and you cannot take prior examples and extrapolate to our current markets.
Of course you can. Because the people trading in that market are still humans, and have the same human responses as people have had since markets started trading. This is a psychological effect, not a purely economic effect. If the Boomers and older Gen-X get spooked and decide to change the ratio of bonds to stocks in their 401K accounts the market is going to to shift. You can argue economic theory to a scared 60 year old all day long and it just isn't going to matter. That is why I said it is President Trump's big test. If people calm down then we go back to growth. If the CNN doom merchants win then we are going to bounce up and then head back down again. Economic fundamentals only kick in once the psychological panic has passed.
Take in point commodities fell while the markets fell. I took a beating on silver when, as with past economies, I would gain.