Yes, the fund manager was correct. No one really knows what causes it. It's the sum intelligence (or lack there of) of everyone involved market that makes a market. Sometimes, there are obvious catalysts for sell offs or rises in price, but most of the time, we (both ourselves and the media) just create stories around why certain things happen in the market. Great point about human emotions. I hadn't thought about it like that. We tend to create narratives about why we feel the way we feel instead of just accepting for what it is.
Yes, the fund manager was correct. No one really knows what causes it. It's the sum intelligence (or lack there of) of everyone involved market that makes a market. Sometimes, there are obvious catalysts for sell offs or rises in price, but most of the time, we (both ourselves and the media) just create stories around why certain things happen in the market. Great point about human emotions. I hadn't thought about it like that. We tend to create narratives about why we feel the way we feel instead of just accepting for what it is.