<p>When markets get fooled, stocks get …well, WHACKED, to quote a famous Kramerism. Our audience deserves to know more about volatility - for all the PhDs, MBAs and CFAs working on Wall Street, for all the compliance rules and regulations, why is it that a stock can go from hero to zero so quickly? Why is stability in itself destabilizing? [Repeat from May, 2024]</p><br><p>For more on Bubble Trouble, including transcripts of the show, visit us online at <a href="http://bubbletroublepodcast.com/" rel="noopener noreferrer" target="_blank">http://bubbletroublepodcast.com</a></p><p>You can learn more about Richard at <a href="https://www.linkedin.com/in/richard-kramer-16306b2/" rel="noopener noreferrer" target="_blank">https://www.linkedin.com/in/richard-kramer-16306b2/</a></p><p>More on Will Page at: <a href="https://pivotaleconomics.com/" rel="noopener noreferrer" target="_blank">https://pivotaleconomics.com</a></p><p>(Times below correspond to the episode without considering any inserted advertisements.)</p><br><p>Understanding Market Volatility: The Seven Deadly Sins That Get Stocks Whacked</p><br><p>In this episode of Bubble Trouble, hosted by independent analyst Richard Kramer and economist Will Page, the duo delves into the intricacies of stock market volatility and the factors that lead to significant drops in stock values, often referred to as getting 'whacked.' They explore why financial markets remain volatile despite compliance rules and thorough analysis by Wall Street's experts. Using recent examples like Duolingo and Double Verify, they highlight how sentiment, market expectations, and artificial intelligence fears influence stock performance. They introduce the concept of the seven deadly sins—ranging from expectations management to fake it till you make it—that companies and analysts commit, causing stocks to tank. The discussion covers essential themes like the role of credibility, influence of peer performance, external market factors, and the impact of fear and greed. They also touch on larger market dynamics, such as the dominance of tech giants and the influence of algorithmic trading. The episode is both an educational dive into market mechanics and a cautionary tale for investors, emphasizing the importance of understanding broader market sentiments and the potential pitfalls of speculative trading.</p><br><p>00:00 Introduction</p><p>01:18 Part One</p><p>02:30 Recent Examples of Stocks Getting Whacked</p><p>06:08 The Role of Expectations in Market Behavior</p><p>10:53 Credibility and Its Impact on Stocks</p><p>16:17 The Influence of Peer Groups and Market Share</p><p>18:19 Mathematical Models and Black Swans</p><p>23:09 Part Two</p><p>24:15 The Sheer Size of Companies and Market Impact</p><p>25:13 Big Companies and Revenue Growth Challenges</p><p>26:33 Market Dynamics and Money Managers</p><p>27:04 Thought Experiment: Market Crowding</p><p>28:53 Taxing Market Capitalization</p><p>34:18 Fear and Greed in Financial Markets</p><p>40:11 Unprofitable IPOs and Market Distortions</p><p>42:47 Seven Deadly Sins of Stock Trading</p><p>46:22 Conclusion and Final Thoughts</p><p>46:53 Credits</p><p><br></p><br /><hr><p style='color:grey; font-size:0.75em;'> Hosted on Acast. See <a style='color:grey;' target='_blank' rel='noopener noreferrer' href='https://acast.com/privacy'>acast.com/privacy</a> for more information.</p>
![<p>When markets get fooled, stocks get …well, WHACKED, to quote a famous Kramerism. Our audience deserves to know more about volatility - for all the PhDs, MBAs and CFAs working on Wall Street, for all the compliance rules and regulations, why is it that a stock can go from hero to zero so quickly? Why is stability in itself destabilizing? [Repeat from May, 2024]</p><br><p>For more on Bubble Trouble, including transcripts of the show, visit us online at <a href="http://bubbletroublepodcast.com/" rel="noopener noreferrer" target="_blank">http://bubbletroublepodcast.com</a></p><p>You can learn more about Richard at <a href="https://www.linkedin.com/in/richard-kramer-16306b2/" rel="noopener noreferrer" target="_blank">https://www.linkedin.com/in/richard-kramer-16306b2/</a></p><p>More on Will Page at: <a href="https://pivotaleconomics.com/" rel="noopener noreferrer" target="_blank">https://pivotaleconomics.com</a></p><p>(Times below correspond to the episode without considering any inserted advertisements.)</p><br><p>Understanding Market Volatility: The Seven Deadly Sins That Get Stocks Whacked</p><br><p>In this episode of Bubble Trouble, hosted by independent analyst Richard Kramer and economist Will Page, the duo delves into the intricacies of stock market volatility and the factors that lead to significant drops in stock values, often referred to as getting 'whacked.' They explore why financial markets remain volatile despite compliance rules and thorough analysis by Wall Street's experts. Using recent examples like Duolingo and Double Verify, they highlight how sentiment, market expectations, and artificial intelligence fears influence stock performance. They introduce the concept of the seven deadly sins—ranging from expectations management to fake it till you make it—that companies and analysts commit, causing stocks to tank. The discussion covers essential themes like the role of credibility, influence of peer performance, external market factors, and the impact of fear and greed. They also touch on larger market dynamics, such as the dominance of tech giants and the influence of algorithmic trading. The episode is both an educational dive into market mechanics and a cautionary tale for investors, emphasizing the importance of understanding broader market sentiments and the potential pitfalls of speculative trading.</p><br><p>00:00 Introduction</p><p>01:18 Part One</p><p>02:30 Recent Examples of Stocks Getting Whacked</p><p>06:08 The Role of Expectations in Market Behavior</p><p>10:53 Credibility and Its Impact on Stocks</p><p>16:17 The Influence of Peer Groups and Market Share</p><p>18:19 Mathematical Models and Black Swans</p><p>23:09 Part Two</p><p>24:15 The Sheer Size of Companies and Market Impact</p><p>25:13 Big Companies and Revenue Growth Challenges</p><p>26:33 Market Dynamics and Money Managers</p><p>27:04 Thought Experiment: Market Crowding</p><p>28:53 Taxing Market Capitalization</p><p>34:18 Fear and Greed in Financial Markets</p><p>40:11 Unprofitable IPOs and Market Distortions</p><p>42:47 Seven Deadly Sins of Stock Trading</p><p>46:22 Conclusion and Final Thoughts</p><p>46:53 Credits</p><p><br></p><br /><hr><p style='color:grey; font-size:0.75em;'> Hosted on Acast. See <a style='color:grey;' target='_blank' rel='noopener noreferrer' href='https://acast.com/privacy'>acast.com/privacy</a> for more information.</p>](https://us-central1-podcastguru-217d6.cloudfunctions.net/gcf_get_image?image_url=https://assets.pippa.io/shows/646cf723f5ce1700110a830e/1684937397678-8abe2dd3db8e5db07acad9808014f39e.jpeg&width=300&height=300&api_key=xqFmUFX5BHLBTA)