Money
Associated Press/Photo by Yorgos Karahalis

Dollars and Sense: Volatility returns to the markets

Money
by Warren Cole Smith
Posted 3/30/15, 10:08 am

Calm before the storm. Last Monday, I said the week before had been pretty quiet, but we can now say it was a calm before another storm. In Europe, Greece and its key creditor Germany kept trying to work out a deal for Greece’s debt. But because both sides remain intractable, the deal continues to stall, spooking the global markets. The Dow lost ground four out of five days last week. We also saw a continuation of volatility in the markets. On 14 of the first 19 trading sessions in March, the Dow moved up or down more than 100 points.

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Associated Press/Photo by Richard Drew

Dollars and Sense: The Fed speaks, and the markets barely notice

Money
by Warren Cole Smith
Posted 3/23/15, 10:10 am

Yellen speaks. The big news last week was a two-day Federal Reserve meeting on Tuesday and Wednesday. Fed-watchers were on the lookout for a single word: “patient.” Past statements from the Fed said the central bank would be “patient” about raising interest rates. The markets interpreted that to mean as long as the word “patient” was in the statement, an interest rate hike was still off in the future. But when the Fed eliminated the word patient, it would signal interest rate hikes could come soon.

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Associated Press/Photo by Michael Probst

Dollars and Sense: Europe starts quantitative easing, fears of a correction loom

Money
by Warren Cole Smith
Posted 3/16/15, 11:15 am

Another volatile week. The markets were volatile again last week. After a five-year rally without a serious correction, sometimes news the markets think could throw a wet blanket on the fire causes a big drop. Then, the fire burns through the blanket anyway and the markets rise again. That cycle causes big drops and then—usually within a day or two—big gains again take us back to where we started.

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