NH1 News Debates


Oct 15, 2014 10:31 PM

Stock market volatility: What's behind it?


CONCORD - Yet another wild ride on Wall Street today.

Some analysts say all of the market volatility we've seen in the past few weeks could be slowing down.

At one point during afternoon trading, the Dow was down nearly 460 points and at the end of the day found itself 173 points in the red.

In recent weeks, the stock market, analysts say, has been all over the board.

NH1 spoke with Maureen Kelleher, a Senior Vice President at Cambridge Trust Company of New Hampshire, on Wednesday night.

"This remains a very difficult market to quickly and succinctly summarize," Kelleher said.

But why?

She says Issues with the European Union, the crisis between Russia and the Ukraine and slowing growth in China and Japan.

She also cited slowing growth in China and Japan.

But the catalyst for the volatility, Kelleher says, is the spike in the dollar over the summer.

But how does she explain what happened with the markets on Wednesday?

"So what you saw this morning was almost a capitulation when it came to the selling and then you have sectors of the market that have been the hardest-hit in the last couple of weeks actually bounce today and we think again this is partly the mechanics of the market as we move through the typical ups and downs of the market in October," said Kelleher.

With oil prices dropping, Kelleher says, that's where we've seen the most dramatic selling.

That, she says, is fueling the volatility in the market during the last few weeks.

But what about the growing Ebola crisis affecting Wall Street?

"We would say at least long-term not necessarily so but certainly short-time, just as we've seen with the airlines, the answer is, yes, it can have a dramatic effect," Kelleher said.

And what about your 401(k) plan?

Kelleher says if your risk return in your portfolio, then it's what you can afford and withstand.

"Then really these types of bouts of volatility are things you should just basically take a look at but not truly do much from the standpoint of long-term horizons in your portfolio," said Kelleher.

Kelleher went on to say that we should see a lot fewer volatile days like we saw today.

But of course, there's always the possibility of another day just like today, maybe even worse.


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