Thursday, Aug 30, 2007
Loads A Money Lifts Market!
New York Times: Stocks Rally as Investors Chase Deals
Well it has worked so far......... and the soothing words that he will do all necessary to limit damage. Yet then the other post that seems to tell a different story.
It seems that stocks will now rise again as markets are soothed by the kind words and money of the Fed.
Posted by waitingfor hpc @ 08:41 AM (221 views) Add Comment
2 Comments
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1. night said...
"Market strategists said the cascading nature of the rally suggested that computer trading algorithms programmed to buy low were at work. But individual investors looking for bargains were also a factor..."
That's interesting. Anyone know what the role of these computers is? The more share buying and selling is automated the less the market will be susceptible to investor confidence, and the less likely a full blown crash is. I doubt computers can be entirely responsible for the rally (as quote above indicates); surely there is some level of human control? Somehow I doubt that the algorithms include the concept of "credit crunch", so it will be interesting to see how this plays out. Could it be possible that the computers have bought a lot of bad stock thinking it was a bargain?!
2. mrmickey said...
Yes maybe the stock market is now one big computer game chuntering along totally detached from the economic reality going on outside it's own virtual world.