It doesn’t always have to make sense

I used to think it had to make sense. I used to believe in linearity or some semblance of a plot that went in order. I’ve read a thousand novels. This happens, which causes Character A to do that, which causes Character B to do the other thing in response.

But it’s not a book. It’s not a story. It’s real life, which is messy and nonlinear and frequently makes no sense.

Today’s one of the all-time great non sequitur days in the history of the stock market. Appreciate it for what it can teach us.

I said the other day that we knew the news would get worse, but that its ability to shock to shock us would eventually diminish. Maybe that’s the best explanation for a 6% rally in stocks on the day our infection totals eclipsed those of China, while over 3 million people filed unemployment claims in one week.

Even if you had known this news in advance, you could not have predicted the market reaction. Which is why we’re a rules-based firm rather than a firm that relies on narratives. This is one of the primary lessons we educate clients on. And sometimes we have to relearn it ourselves.

Here’s Barry and Michael explaining why today’s terrible news was greeted with a rally for the ages:

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. dumps shop online commented on Jan 26

    … [Trackback]

    […] Here you can find 78931 more Information on that Topic: […]