The Stock Market Looks Broken -- Here's Why It Isn't
The stock market was incredibly volatile on Monday, with major market benchmarks opening mixed but then seeing a big swoon lower in the late morning before bouncing back somewhat. As of 11:30 a.m. EST, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 294 points to 30,703, and the S&P 500 (SNPINDEX: ^GSPC) fell 24 points to 3,817. The Nasdaq Composite (NASDAQINDEX: ^IXIC) dropped 54 points to 13,489.
The new week brought absolutely crazy moves from beleaguered stocks like GameStop (NYSE: GME), AMC Entertainment Holdings (NYSE: AMC), and Bed Bath & Beyond (NASDAQ: BBBY). Plenty of other popular companies saw massive swings in morning trading.
Some believe that means that the stock market is inexorably broken. But the fact is that such moves have happened before, and they'll inevitably happen again -- but rational investing will win out in the long run.
Source Fool.com
