Stocks volatile this week

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This week, especially on Tuesday and Wednesday, stock markets around the world have been very volatile. In fact, those two days were like day and night from one another. On Tuesday, international worries led the markets to a large drop. The Dow Jones Industrial Average in New York dropped about 142 points for the day. The main concerns were the economic problems in Ireland and even more so, the artillery fire by North Korea on a South Korean island.

Although these worries have not completely disappeared, people have come to realize that Ireland will get a bailout and will look at austerity measures to fix their economic issues. With North Korea, everyone knows that they just want attention from the U.S. and were hoping this attack would end up with the U.S. speaking to them directly. Although there is some chance of a war in that region, people came back down to earth and realized that it is not too likely right now.

On Wednesday, good economic data points in the U.S. led the stock markets up. The Dow finished up 150 points which is always nice. The data suggests that the U.S. economic recovery is beginning to be self-sustaining. This is great news and it has more impact moving forward than the bad international news we heard on Tuesday.

Actually, on Tuesday while everyone (by everyone I mean investors in the stock market) was busy being worried about North Korea, there was actually some very good economic news as well. The U.S. GDP growth for the third quarter was better than expected, but everyone was so busy thinking about international problems that they forgot that the world’s largest economy is starting to perform better. This should be the most important story in the news right now, not anything else. I don’t really care much about North Korea’s nonsense because it has zero impact on my life. I want to hear about the economy improving. That’s what matters.