Why Are Markets Even Open Right Now?

American markets keep churning ahead, as more Fed shenanigans brought yet another eye-popping day on the bourses. And then, Poof! A 4% up day turns into a flat day in a couple hours. Like so much sand running through your fingers.

I can't shake the feeling that our lack of sports somehow is contributing to these volatile days. Somehow, all these shut-in upper middle class and upper class well-to-do's are living out their competitive desires in the digital trading pits. Hence, we see a month's worth of market moves in a day. And they're amplifying that with leverage! Someone can take that idea and run with it. Be my guest. Bring back sports to save our markets! Anecdotally, I do know that this trading platform just sent out 5X more in dividends in Q1 2020 than it did for all of H2 2019. To me, that's enough to prove that we are seeing a huge spike in the volume of leveraged daytrading. CZ is definitely raking it in. Or else, why would he spend $400 million on coinmarketcap? Anyways, this testosterone riddled daytrading thesis is just an off-the-wall thesis I have.

I'm mostly a monetary policy nerd, so that's where I look first when trying to explain market moves. Using this logic, there's but one explanation for the current bull run in the stock market. There's certainly nothing but a shell of an economy to speak of in most of the COVID19-affected nations at the moment. There aren't even traders on the floor.

So algorithms grind us higher on hopium that the "growth rate of new coronavirus cases APPEARS to slow". The reality of the situation is that statistics methodologies dictate a reduction in reported cases on Monday.

All of this hullabaloo gives us a moment to pause and consider what in the HECK it is that we're doing. Why are markets even open right now? Might we consider putting them into quarantine, too? A week or two off from this mind-numbing volatility might do the whole world some good.

At the very least we could thoroughly consider the sentiment presented in this quote from an interesting article in South Africa's Mail & Guardian:

"The coronavirus has achieved something in the blink of an eye that no amount of credible scientific evidence on the dangers of climate change could have hoped to have done: it has given us an unexpected taste of a post-development world.

“In this space right now, we have the opportunity to ponder the possibilities of caring (both for ourselves and the fragile planet we inhabit) and the value of minimalism (in which emotional wellbeing and happiness are prioritised over profit) in a post-development era."

A week or two of respite from the stock markets might give politicians the breathing space they need to pass much-needed legislation without the fear of spooking the markets. After all, in the long term, stock market returns will be, by definition, unaffected. In the short term, by freeing people and lawmakers from the judgmental eyes of daily market returns, we could make some very important decisions. Progress could be made that saves a not inconsequential amount of lives.

In these times of storm and stress, isn't that what we should be focused on?

I don't know. Just a thought.