“Why the stock market's tranquil ascent abruptly turned into a roller-coaster ride” by James Peltz, Los Angeles Times.
Financial advisor Todd Morgan has plenty of rich clients in Southern California who needed to hear a soothing word about the stock market's wild gyrations last week.
"This calls to mind my favorite saying, 'The market will do whatever it has to do to prove the most people wrong,'" said Morgan, chairman of Bel Air Investment Advisors in Century City, which caters to high-worth customers.
His point: Until this month, many investors had grown accustomed over the prior year to nearly optimum conditions in the stock market. Shares kept climbing to record levels, propelled by growing economies and corporate earnings worldwide, low inflation, subdued interest rates and, perhaps most important, relative calm in trading each day.
The calm abruptly ended last week when the market tanked — with the Dow Jones industrial average plunging a record 1,175 points on Monday, after a 666-point drop the prior Friday — and then swung sharply up and down the rest of the week.
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