Stock Market: Skepticism Rules

(Drivebycuriosity) - "Stocks fell sharply because of trade skepticism" reported CNN this afternoon. Before Wall Street closing stocks dropped even deeper because falling interest rates on the bond market got interpreted as negative economic signals.

Todays` selling  is typical for this year`s sentiment - skepticism rules. The truce in the trade skirmish between the US and China, a sign that the trade war is not as hot a many think, is dismissed, positive influences like lower oil prices are ignored. Others are turned into the opposite.  Not long ago stocks fell because of interest rates were rising, today they fell because interest rates were dropping. Hilarious.

The late after noon selling was typical herd behavior. The crowd  of fund managers and other so-called professional followed blindly some skeptic bellwethers. But the negative zeitgeist is unfounded. Lower interest rates and cheaper oil will support the US economy which is already solid and the trade truce is a sign that both counterparts are capable to find a compromise.