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Banana Republic Stock Market

|Includes: BBY, DWDP, F, GE, GM, INTC, KO, NOK, ORCL, Weingarten Realty Investors (WRI)

When I moved from Brazil to the US, back in 1991, the stock market in Brazil was substantially smaller than the US market, and extremely volatile - as volatile as the Brazilian economy was.
One of the reasons that brought me to the US, was that I wanted a more stable economic environment. This was the US back then...
Since the big bubble burst a decade ago and the explosion of the internet, the US stock market became extremely volatile - and I am not talking about cyclical ups and downs, but daily volatility.
That is why now I refer to the US stock market as a "Banana Republic Stock Market".
Big speculators is one of the reasons that we often hear for as a cause for the swings in the market. I believe that they are a big factor causing those oscillations.
However, have you noticed how many new "experts" have popped-up since the advent of the internet and numerous e-zines? As an advocate of getting rid of oil from its strategic commodity value (I am even driving a GM Volt for that matter, after having a Ford Fusion Flex-Fuel), I myself became one of those writers, and I often get frustrated with the many people that end up writing on the subject without having a deeper knowledge.
This is the case with articles written about the economy and market in general, which end up making the stock market go up 100 points one day, then dropping 100 the next day. And with that, stocks like WRI swing between $23 and $26 over a 3-month period. Ford oscilates between $13 and $16 in the same period. The same goes for DD ($49-$57), KO ($61-$69), GE ($18.50-$20.50), INTC ($19.50-$24), ORCL ($30-$36) and many others. Have the fundamentals of these stocks changed to grant 10 to 20% changes over a 3-month period? Of course not! Note that I am not talking about going straight up or down during the period. I am talking about swings within that range. Now look at some of the news titles we saw during this last week:

- Greek Fears Send Stocks Tumbling
- US Stock Futures Up; China Data Drives Europe, Asia Shares Higher‎
- Stocks Plunge Amid Fears That Global Economy Is Slowing
- Stocks Surge Higher As Rally Gains Momentum With Nokia (NYSE:NOK) and Best Buy (NYSE:BBY)
- US Stocks Decline In Early Trade As Energy Weakens
- Stocks Surge on Materials, Energy‎

One day China drives world markets up, the next day Greece drives the markets down. One day energy stocks cause the market to decline, the next day stocks surge on energy.  Give me a break... Stocks surge on Nokia and Best Buy??

is this a "Banana Republic Stock Market" or not?

Disclosure: I am long WRI, F, DD, GE.