Bad News Isn’t Worst Thing For Stock Market
May 7th, 2008 by Buck Woodford
Oh no. Not even close.
Stocks rallying on bad news is not remotely uncommon. It’s usually the result of portfolio managers using a “well that was bad but surely the worst is over” rationale.
The market’s real enemy is uncertainty. And that’s what it got in spades, with today’s news that the SEC is now forcing Wall Street banks to reveal more information about their capital positions and liquidity levels.
My prediction: the term “level 3 assets” will enter Joe Sixpack’s vocabulary before all this is over.
