Stock Market Today: Greenspan Says Get Outta Here! - StockMarketToday

Stock Market Today: Greenspan Says Get Outta Here!

stock market today greenspan

The stock market today can be a very wild arena to play in especially right now. You’ve got things like the potential government shutdown to consider. Furthermore, you have other stock market participants concerned about losing money depending on the Federal Reserve rate hikes. Though market speculation will always be something to think about, the time to start really paying close attention is when the stock market veterans begin to question things.

Stock Market Showing Signs Of Weakness

Earlier this week, long-standing Wall Street vet Alan Greenspan explained how he thinks that the part is over for the bulls. Being the former Federal Reserve chairman, he is fully aware of what’s at stake when it comes to things like interest rate hikes and the US economy.

“It would be very surprising to see it sort of stabilize here, and then take off,” Greenspan said in an interview with CNN anchor Julia Chatterley.

Though interest rates are a major concern, they aren’t the only thing that investors are paying attention to. Seemingly all year long, major excitement has circled around the US and China trade tariffs. Every time there’s a threat of new tariffs, the stock market takes a hit. Furthermore and much to the dismay of average Joe investors, every time there’s a rumor or Tweet about a possible outcome could have a severe impact on the stock market.

Stock Price Volatility

Greenspan says, “The volatility is a function of how we speak, think and feel — and it’s variable. Unless you can somehow radically change human nature and how we respond, this is what you’ll always get and have been getting. You have to count on it if you’re going to understand how the market functions.”

Many economic critics blame Greenspan for the 2008 financial crisis saying that he actually encouraged the housing bubble. Specifically, certain economists say he was in favor of the housing prices at the time, keeping interest rates low for too long and for not putting on the brakes when the economy grew rapidly in a short period of time.

But then you have the antithesis of this scenario. Other economists have shown concern about the risk of raising interest rates during the current market conditions. The problem comes as President Trump weighs in on the rate hikes and economists want to be assured that the Federal Reserve is free from political intervention.


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