Stop trading! Now, before 2014 turns into 1929
Commentary: 12 warnings that show how stock-market volatility could cost you
By Paul B. Farrell
Feb. 27, 2014
SAN LUIS OBISPO, Calif. (MarketWatch) — Don’t kid yourself. Anxiety’s still sky high. Hidden in denial. Fears of a 2014 crash haunt us like bloody horror films, “Dawn of the Dead,” “Friday the 13th,” “Psycho.” The two 1929 and 2014 charts really are scary.
And that anxiety is now trapped deep in America’s collective unconscious. Reflected in the wild screaming roller-coaster ride of the volatility index VIX -1.39% , a loud voice of investor fears.
Yes, anxiety’s just hidden, fighting in your brain, nagging at most traders, readers, most Americans. Sets up a deep inner mental war. Why? Wall Street and Main Street investors are optimists at heart. We have this secret love/hate with bad news. Gotta blame someone. Externalize anger. Shoot the messenger. We see it every time when reporting bad news, like InvestmentNews ominous warning to 90,000 professional advisers last year: “Bond crash dead ahead: tick, tick … boom: Investors have no idea what’s about to happen.”