In a single trading session, commodities prices came crashing down on Thursday, with silver falling 13%, oil 10% and gold 4%. While the sharp correction was not predicted, a slew of rationale has subsequently been offered to objectively explain the dip. The Financial Times finds most of this reasoning specious, writing \u201cthe ease with which we explain price swings \u2013 in any direction \u2013 suggests that we do not really understand them at all.\u201d Instead, the FT opts for a simpler explanation. \u201cLast week\u2019s slide probably just means that a self-inflated bubble self-deflated a little, in accordance with its own internal mass-psychological dynamics. Put simply, investors took fright.\u201d Trying to explain what caused the fright or predict where it may lead is a fool\u2019s game. Commodities may go up or they may go down. We cannot know.In a single trading session, commodities prices came crashing down on Thursday, with silver falling 13%, oil 10% and gold 4%. While the sharp correction was not predicted, a slew of rationale has subsequently been offered to objectively explain the dip. The Financial Times finds most of this reasoning specious, writing \u201cthe ease with which we explain price swings \u2013 in any direction \u2013 suggests that we do not really understand them at all.\u201d Instead, the FT opts for a simpler explanation. \u201cLast week\u2019s slide probably just means that a self-inflated bubble self-deflated a little, in accordance with its own internal mass-psychological dynamics. Put simply, investors took fright.\u201d Trying to explain what caused the fright or predict where it may lead is a fool\u2019s game. Commodities may go up or they may go down. We cannot know.<\/p>\n","protected":false},"excerpt":{"rendered":"
In a single trading session, commodities prices came crashing down on Thursday, with silver falling 13%, oil 10% and gold 4%. While the sharp correction was not predicted, a slew of rationale has subsequently been offered to objectively explain the dip. The Financial Times finds most of this reasoning specious, writing \u201cthe ease with which […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[675,677,29,678,676],"class_list":["post-730","post","type-post","status-publish","format-standard","hentry","category-global-news","tag-commodities","tag-gold","tag-oil","tag-price-swings","tag-silver"],"_links":{"self":[{"href":"https:\/\/www.irken.jp\/gn\/index.php?rest_route=\/wp\/v2\/posts\/730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.irken.jp\/gn\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irken.jp\/gn\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irken.jp\/gn\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irken.jp\/gn\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=730"}],"version-history":[{"count":3,"href":"https:\/\/www.irken.jp\/gn\/index.php?rest_route=\/wp\/v2\/posts\/730\/revisions"}],"predecessor-version":[{"id":733,"href":"https:\/\/www.irken.jp\/gn\/index.php?rest_route=\/wp\/v2\/posts\/730\/revisions\/733"}],"wp:attachment":[{"href":"https:\/\/www.irken.jp\/gn\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irken.jp\/gn\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irken.jp\/gn\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}