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Re: Recession Risk Is Rising - Fed Better Get Aggressive Soon
If the economy keeps at the rate it's headed, I would think this volatility should be around for a nice time to come. In terms of market cycles, in a topping cycle things are normally very volatile. We've been in a topping cycle on the technical side of things for around 2 months now. Topping can be quick, but often it can be a drawn out thing when the bulls aren't willing to give up on their position. When the bear market comes along, it's typically volatile as well as fear runs on high. When you hear about people saying the housing market isn't to bottom until 2009 ish...that's when I would think volatility might start to decrease a little while the market seeks out a bottom along with that market.
Until the economy goes through this stuff its going through, it'll be nice and day trader friendly. And if it's anything like the rest of the US Gub'ment, it'll take a while.
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