Equity markets constantly surprise me. It’s looking increasingly likely that the Eurozone will disintegrate – leading to potential bank failures, stagnant economic growth and increased unemployment – and the equity markets here in Europe are pretty much shrugging it off today. The FTSE100 is up over half-a-percent at pixel time.
It’s like the equity participants are saying to themselves “Well, we had a down day yesterday, so it must have been oversold, right?”. During the last financial crisis it was like that as well. There would be a big fall one day, and then the stocks would rally somewhat, and then another big fall… rinse and repeat.
Maybe everyone is afraid of missing out on the bottom. Don’t worry – I think it’ll be a while before you have to worry about that.