Volatility may bring stimulus back onto the agenda
The markets have turned neurotic this year with sellers hitting the markets with new found aggression. Selling begets selling and the psychology has a life of its own. It
is questionable whether this is rational behaviour or not, but for market participants the only reality is what they see on the screen. The view could be very different in a month's time though as heavy selling inevitably results in buying, at some point. Buying that came in at the end of the week, particularly on Friday, could mark the turning point.
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