Stock Volatility to Have Long-Term Impact on Capital Raising and Consumer Wealth
2/26/2026
As I write this, the market is in a tailspin: the Nasdaq is down 322 points (1.4%) and the S&P 500 has shed 0.75%. Even companies with rock-solid fundamentals are seeing 5%+ intraday drops, marking yet another chapter in a long saga of senseless daily volatility.
Who knows where we go from here? Tomorrow, the indexes could swing 4% to the upside based on nothing more than the whims of momentum traders.
While our account is currently up 27 basis points today—and also outperforming for the quarter—we take no comfort in this chaos. Only God knows which side of the bed traders will wake up on tomorrow, let alone next month when the quarter ends and another flash flood of cash emerge.
We have grave concerns regarding the influence of massive day-trading operations. When trillions of dollars are moved by high-frequency algorithms rather than economic analysis, it distorts the cost of capital. For analysts and companies worldwide, this volatility wreaks havoc on the ability to efficiently raise capital.. Furthermore, it baits “weak-kneed” investors into emotional selling, stripping them of their confidence and jeopardizing the stability of 401(k)s and retirement funds.
Stock volatility has a large impact on credit securities, employee morale, and perhaps even vendor financing.
To restore financial market efficiency and their reason for being, we call for a 90% tax on all day-trading profits.
