There is really no accounting for Mr. Market's behaviour. Just this morning, share prices were still holding up nicely and in the afternoon, they were all much weaker. It reminds me of Singapore's weather in recent weeks, sunny in the mornings and raining heavily in the afternoons.
If we were to comb the internet for possible reasons for the decline in share prices, we would see analysts putting the blame on China's poorer manufacturing data in May and Ben Bernanke's remarks which have been interpreted as a possible earlier tightening of money supply. As far as I am concerned, Mr. Market was itching to take profit and these are excuses.
Ben Bernanke's statement was made public last night and when I read the papers this morning, what really struck me was his statement that the Fed's current monetary policy is providing significant benefits and that "a premature tightening of monetary policy ......