It’s almost impossible to ignore the recent spate of banking “issues”, from Northern Rock and the US Subprime, to the Lehmans Chapter 11, and HBOS/Lloyds Merger – 2008 has been a volatile year for the markets and for banking.
What does it mean?
Well that is the million dollar question.. and what will happen remains uncertain. What can be seen is that past models and assumptions were not correct or had “blind spots”. We’re big fans of the Black Swan phenomenon.. on that one.
So for now.. what should you do?
Well only you can answer that.. but for traders volatility can be a good thing.. if you know your market fundamentals