No Logic to How Market Swings Affect Individual St …

By Steve Dinnen

Signature Bank is a commercial bank based in New York that has been a solid performer, and I’m glad to own shares. But I got a little jolt on March 1 when the stock fell 8.9% for the day. That’s a big move. There was no earnings announcement, no earnings guidance, no ratings change—nothing to readily explain why that happened. Then from March 5 to March 7 it shed another 8.9%.

Just yesterday it climbed back 8.6%. That was nice. But why? Because these are volatile times for the market, a hallmark of geopolitical unrest. The market reacts to invasions, or thoughts of invasions, or thoughts of retrenchment, in outsized ways that drag along a lot of players. Ditto for interest rates and inflation (and Wednesday’s interest rate bump by the Fed).

On average, the market rises or falls less than 1% 70% of the time. A 2% up-down move happens 20% of the time, and 3% or more, 10%. But that’s the average of all the individual stocks. Yesterday, when the Dow rose 1.55%, my Ford shares added 3.24%. TradeDesk jumped 11.96% and Doordash a whopping 13.45%. Exxon shed 0.38%.

Welcome to the new world order. For the time being, anyway.

You May Also Like

Keeping an Eye on Gold’s Silver Lining

BY STEVE DINNEN Can you buy gold? Sure, all you want. $1,200 or so ...

Budget Airlines Can Still Take You There and Back

Photo: Ashim D’Silva By Steve Dinnen A Cadillac Escalade will transport you from Des ...

How IPERS Invests Its $43 Billion

By Steve Dinnen A well-diversified portfolio is a work of art – a bold ...