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Ask Fear & Greed: Why do markets react counterintuitively?

Ask Fear & Greed: Why do markets react counterintuitively?

FEAR & GREED | Business News
8 min
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<p>Listener Brian asks: <em>Last Monday, the ASX tumbled but there was a lot of talk about "interest sensitive stocks" falling disproportionately relative to the index.</em></p> <p><em>Given that interest rates have started to fall across the globe, and that the RBA's launch on that rate-cutting cycle appears (relatively) imminent, the reaction of the market seems totally counterintuitive (that stocks sensitive to rising interest rates would plummet when rates are about to fall). </em><em>Why is it so?</em></p> <p>Join Sean Aylmer &amp; Michael Thompson as they answer listener questions.<br><br>If you have your own question for Ask Fear &amp; Greed, get in touch via our&nbsp;<a href="https://www.google.com/url?q=http://fearandgreed.com.au&amp;sa=D&amp;source=calendar&amp;ust=1723898223048423&amp;usg=AOvVaw1snlUlrdoe3pjkntOBvf7o" rel="nofollow">website</a>,&nbsp;<a href="https://www.google.com/url?q=https://www.linkedin.com/company/fear-and-greed&amp;sa=D&amp;source=calendar&amp;ust=1723898223048423&amp;usg=AOvVaw3lBwm7MeMyjm-KbTbV9V6L" rel="nofollow">LinkedIn</a>,&nbsp;<a href="https://www.google.com/url?q=https://www.instagram.com/fearandgreedpodcast/&amp;sa=D&amp;source=calendar&amp;ust=1723898223048423&amp;usg=AOvVaw20QLQOvgYfxrbN_yfFSOrt" rel="nofollow">Instagram</a>&nbsp;or&nbsp;<a href="https://www.google.com/url?q=https://www.facebook.com/FearAndGreedPodcast&amp;sa=D&amp;source=calendar&amp;ust=1723898223048423&amp;usg=AOvVaw2tGXLZpwuv-pE29VTi4PJy" rel="nofollow">Facebook</a>!</p> <p><a href="https://fearandgreed.com.au" rel="nofollow">Find out more: https://fearandgreed.com.au</a></p> <p>See <a href="https://omnystudio.com/listener" rel="nofollow">omnystudio.com/listener</a> for privacy information.</p>