Why can’t we keep former reserve chairman Ben Bernanke from speculating and drive the market down?
Posted by admin · 6 Comments
It appears everytime Ben Bernanke opens up about his opinions the market has a bad day. Can anyone explain why his influence is so great even after he has stepped down and retired. Personally I can’t tell that he retired.
Originally posted 2009-12-18 16:19:15.
Anyone in close contact with the Fed Reserve has been exposed to a lot of power and a lot of information that even most investment experts don’t see. It’s assumed that he got the job because he was a good forecaster, or at least had good instincts about which way the market was going to go. So, people assume in turn that he must have knowledge of what the market will do.
Finance and portfolio management are part math, part sweat, and part prayer. You can never predict what the market will really do, so people go with sources of information that, in other fields, would be pretty dubious. It would probably help to stabilize the market if Bernanke were to keep his mouth shut, but of course there’s freedom of speech to worry about, so he’s free to say what he likes and people are free to listen.
If you’re sure that the market will go down when he comes out and talks to the press, you might want to keep an eye on his schedule and short-sell some index futures the morning before a press conference. Good luck with that.
His influence is so great because people trade out of fear and panic.
(Ben Bernanke stepped down??)
First it was Alan Greenspan who retired. Second, you have to look at these down days as oppurtunities. Personnally I’m hoping that the market will go down another 100 points or so. I still haven’t seen any good buying oppurtunities. Sure we all like to see the market go up every day. You have to be able to trade the down days as well as the up days.
It’s 12:30, the market is down almost 1% and I’ve still got green numbers, for me that’s a really good day.
he left. so whos the new chairman. bush? wonder where you got that info, and those who asnwering your question based on your content pretty much got their head in the wrong direction.
He didn’t retire. He’s the current Chairman of the Federal Reserve.
Alan Greenspan retired. You’ve confused the two of them.