The Nasdaq composite index, which follows the lead of high-tech stocks, was down 25 percent early last week, then fell even further. Friday's bloodbath came as higher inflation numbers spooked an already jittery market. Not that the market needs logic to react. J.P. Morgan, the 19th century plutocrat, said it best when asked what the market will do. And has it.
Volatility is the name of the game.
Markets used to inch up or down. Now, they soar and drop with the speed of a roller coaster. However, while the market goes up and down, the overall economy is great. The Houston Purchasing Managers Index, which tracks the local economy, shows continued area economic growth for the 13th consecutive month. They've invested not for any logical reason, but because everyone else was throwing money at the same thing.