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What Caused The Q4 Stock Market Crash? Let’s Ask The News Team!

Quantifying the contribution of various factors to the selloff via a news-based event-study approach.

Quantifying the contribution of various factors to the selloff via a news-based event-study approach.
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2 comments on “What Caused The Q4 Stock Market Crash? Let’s Ask The News Team!

  1. Initially the inflation pick up was seen as a positive, as a sign of good strong economy and equities made their final rally on that. The upbeat economic data.

    As you wrote here
    https://heisenbergreport.com/2018/10/10/stock-bond-correlation-breaks-presaging-locust-plague-pestilence-famine/
    “Last Wednesday, equities not only digested rate rise with alacrity, stocks actually celebrated the bond selloff on the assumption that rising long end yields represented the bond market “catching up” with economic reality. Fast forward to Thursday and stocks weren’t so sure. By Friday, it was clear that even if rising yields were “validation” of U.S. economic prosperity, the rapidity of rate rise represented a threat to equities.”

    It was October 10th, an evening comment after the first real selloff from ATH. On that day ndx futures lost 400 points from 7400, -6%.

    By the way, funny how famine, locustes, and diseases effectively came afterwards.

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