The stock exchanges have been subjected to hard winds this week, as it was expected by nearly all the expert analysts. I find it quite interesting that so many observers who are also actors on the market were able to forecast accurately the crisis but were not able to anticipate it enough to avoid it. It looks like a kind of blindness: I know that I’ll miss the next turn, but I keep pushing the pedal down.
The NASDAQ and Dow Jones went down. The CAC40 Paris index fell -6,5% in a week (my own stock portfolio did -4,55% on the same period and I had already protected a lot of it in a national fund (Livret A, much more stable in those hard times)). The newspapers and journalists run aournd it in circles while shooting “we saw it coming” and repeating their mantra (“be selectve in your stock picking” which means don’t buy junk; Isn’t it a brilliant financial insight?).
I find it funny in this mini-crack context that some technology-oriented web sites started crying because the stocks from Intel or AMD went down. I won’t give names, but they completely failed to notice that it was not a problem with the individual stock but a market pushing everything down. Nothing frightening for the electronics giants, unless your analysis is really audacious or really ill-informed about the mechanisms of financial markets.