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The stock market and other facts of life | Off Kilter


Last updated 5/11/2022 at 11:55am

OK, don’t panic. Yeah, we are in the middle of a stock market correction. It may drop as low as 20% off its high from last year. Top rule of investing is: Buy low, sell high. And definitely not the opposite.

One factor in this drop is the uncertainty of our economy. While COVID created turbulence in the market (after all the economy was basically closed down for a year), at the same time, the Federal Reserve pumped trillions of dollars into the economy.

So, what happens when we have an extra amount of liquidity in the economy? Here’s what happens. People buy stocks and other stuff. That...

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