Been an eventful week in the stock markets. It's really my first time seeing such volatility seeing how I was really too young to understand anything in 1998. Markets plunged on Monday and Tuesday before rebounding strongly to cover everything that's lost on Wed and Thurs. Bit by bit you start to comprehend what Buffett speaks about.
What happened initially was the bond insurers having their ratings downgraded as well as a rumour of the Bank of China having a large subprime exposure. Then yesterday the Fed announced an interest rate cut to 3.5% which caused everything to bounce back. Now the banks are said to be bailing out the bond insurers with $15bil. There are so many things happening it's really quite exciting! That's also pretty much the reason why Soros and Buffett didn't set up their offices in Wall Street where all the action is...simply because there's too much action! It's like an overdose of viagra! (ok that was a joke)
I'm glad I'm starting early. If I awaited till I graduated before I really started looking at stuff I may have missed a great learning opportunity. Who knows what will come out of this period of turbulence.
What happened initially was the bond insurers having their ratings downgraded as well as a rumour of the Bank of China having a large subprime exposure. Then yesterday the Fed announced an interest rate cut to 3.5% which caused everything to bounce back. Now the banks are said to be bailing out the bond insurers with $15bil. There are so many things happening it's really quite exciting! That's also pretty much the reason why Soros and Buffett didn't set up their offices in Wall Street where all the action is...simply because there's too much action! It's like an overdose of viagra! (ok that was a joke)
I'm glad I'm starting early. If I awaited till I graduated before I really started looking at stuff I may have missed a great learning opportunity. Who knows what will come out of this period of turbulence.