What's causing volatility in the stock market?
Here is what I would like you to do today as we get going unfocused your eyes if you would figuratively of course like you do when you drop something or your pattern rug and how that can help you find what you're looking for. Do the same for me now. With the admittedly nutty stock market gyrations the past couple of weeks ups and downs of three or four five percent or more focused not on the actual movements but on the underlying phenomenon the volatility marketplace's got tongue explains why it's happening and what it tells us by one. Measure stocks have not been this volatile since the financial crisis a decade ago. Surely it's the fear of Corona virus but for traders addicted data. There's not enough of it. How long will the outbreak last are the Chinese factories back? How was hit company? Earnings at Charles Schwab one of our underwriters. Strategist Liz end. Sandra says many companies have gone silence. They're just saying we're not even giving guidance because we have no idea what is going to happen so in terms of how Wall Street kind of prices stocks and markets analysts. You know have their hands in the air. Then there's election year uncertainty as the market swings based on which candidate is up the moment now when markets struggled to predict the future. Which is their job. They gyrate according to George Perks. Bespoke investment group. He says it can go like this. When investors sell and expect the worst a little ray of hope can change everything if every piece of news is bad for awhile. Expectations come down and so now that expectations are down. It doesn't take much good news for everything flip in reverse often. It's consumer stocks doing the Bungee up and down. That's because consumption is the big unknown now says Scott Wren at the Wells Fargo Investment Institute. What are it's apparel devices online? Entertainment streaming if consumers are more willing to spend money on that because they're less fearful of catching the virus Then those who tended to do better mud finding specific causes of volatility only gets a so far. The market's a big complicated place. Study suggests long periods of calm somehow lead to volatility in the markets bounce up and down the more. They get driven by emotion. I'm Scott Tong for