Investors Between Panic And Euphoria

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    Uncertainty around the central banks and the health of the global economy has driven investors between the extremes of panic and euphoria, says Algonquin Capital. In the past eight months, the S&P has experienced four swings of over 10 per cent, including starting the New Year with a dramatic fall only to climb back and finish the quarter pretty much unchanged. With no significant changes in the underlying global risks or economic fundamentals, making sense of these moves is like trying to understand the “gibberish at the Mad Hatter’s tea party,” it says. “As Alice put it, ‘you might do something better with the time than wasting it in asking riddles that have no answers’.” Its conclusion is that “common sense doesn’t really work here.”