The Stock Market Hopes the Worst Is Over. Experience Says It’s Not. | Barron’s
Never underestimate the stock market’s ability to prioritize hope over experience.
Hope would suggest that everything will work out fine: The banking panic that began with Silicon Valley Bank’s collapse is just a blip; the Federal Reserve’s quarter-point interest-rate hike, despite the turmoil in the financial system, is sound monetary policy; and the
bounce that began in October really was the start of a new bull market. That the index rose 1.4% this past week, while the
better known as the VIX, fell 15%, would suggest the problems are manageable.
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