But one thing is very certain if you talk to the common man in the streets and which is that he is gathering and cleaning up all his investments in order to close shop for long wintry days of uncertain income ahead. Perhaps, this movement away from the stock markets have caused heavy selling that sent the share prices tumbling down. The fact that old economy stocks have done better than the new economy is because the people are in no mood to expand and to experiment. The people are showing extremely conservative behaviour and holding on to whatever they feel is assured and tested. Such are the times of uncertainty and not of risk.
Risk brings with it a bullish behaviour, uncertainty is bearish.
Risk makes men charge ahead, uncertainty makes them crouch back. Everywhere income is becoming uncertain. Rates of interest on savings are declining, the capital markets are levelling out, and employment opportunities are shrinking. In the face of uncertain income, consumption is likely to contract. If consumption contracts, investments in the private sector are likely to get jeopardised.