Market falls: Financial Armageddon or irrational fear?

Economics do not justify gloom scenario

clock • 3 min read

"It is imperative to take the emotion and noise out of the investment equation," according to OCM Wealth Management's founder and CEO Jason Stather-Lodge (pictured).

The erratic nature of market volatility since the beginning of the year has been well document but what on earth is going on? Is it even justified? We are anxious that the underlying data that represents a continued expansion in developed markets is being ignored completely and replaced by irrational fear that has caused prices in all asset classes, bar government debt, to plunge. Fears over market liquidity and defaults rates on debt have been a driving force. As an example, banks are being valued at 50% of price to book and, in some cases, even less. This would indicate some kind o...

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