Monday, January 25, 2016
PR practitioners are used to the irrational in daily affairs. Commodity traders aren't, but that is what is happening to them in the oil market. Irrational price declines have entered a territory in which no one is sure where the bottom might be. The interesting part of the fall is that it isn't retail investors who are panicking in the market but hedge funds and experienced traders. Supposedly the homo economicus would see price and demand and act rationally, but that isn't the case. Markets are moved by raw fear. As experienced hands in dealing with irrational events, we can say to oil traders, "Welcome to the club."