Is it up? No, it’s down? No, wait, it’s up,…

The stock market is acting more like a roller coaster in an earthquake recently. Admittedly, the Subprime problems have started a lot of jitters amongst investors, and the number of people defaulting on their now-increased subprime mortgages is causing housing prices to wobble. But overall the economy is doing relatively well in spite of all this.

Now comes the downturn in caused by an unexpected increase in the number of job cuts for August. This followed by everyone all but begging for the Fed to cut the interest rates, even though they’ve been at historic lows already for years.

This disconnect between perception and reality is causing the market to behave like a boxer with an upset stomach; Lots of fight still left in it, but reeling from internal problems. One day the DJIA’s up a couple hundred points, the next down a couple hundred. It’s turning into a cyclic problem. People get scared because of the big ups and downs, and decide to sell, which causes the big downs, while others see the whole thing as a buying opportunity and buy, causing the big ups.

Anyone got some antacid??

Technorati : finance, jitters, job loss, personal, stock market