The financial media loves volatile markets. When the market drops, investors understandably become anxious. They have questions like: What is causing the decline? How low will the market fall? Should I sit on the sidelines until things “settle down”? Are there “defensive stocks” I should buy that will protect me during this period of uncertainty?
Pundits then come out of the woodwork to answer these questions, and more. They give lofty-sounding explanations for what is happening and often make predictions about the future direction of the market.
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