I spent most of last week trying to come up with a reason for the stock market pricing process. I have listened to many equity market experts offer their opinion. In the end, there does not appear to be a fundamental reason for the volatility that has been experienced. My bigger concern is whether the 10% downside correction in equity prices will have an impact on economic fundamentals. There are concerns the decline will have a negative impact on consumer and business confidence and reduce consumption going forward.

There is a negative impact on the wealth effect of equity markets. Consumers feel wealthier when the values of their retirement plans are high…

ProBank Austin Advisor – February 12, 2018