Why the Market Is Behaving Badly

Last Updated Aug 5, 2011 12:02 PM EDT

Yesterday, we saw what you can do regarding your investing future in the face of severe market turmoil. Today, we'll take a deeper look at the causes behind the volatility and how you can maintain perspective during these difficult times.

Investors were probably hoping that with the debate over raising the debt ceiling settled, without the Treasury defaulting or the U.S. losing its AAA rating (at least for now), that the equity markets would not only recover, but even begin a rally. Unfortunately, equity markets still face a laundry list of headwinds, many of which are eerily similar to the headwinds investors were worried about a year ago. Let's look at the list of issues investors are concerned about.

Photo courtesy of Katrina.Tuliao on Flickr.

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    Larry Swedroe is director of research for The BAM Alliance. He has authored or co-authored 13 books, including his most recent, Think, Act, and Invest Like Warren Buffett. His opinions and comments expressed on this site are his own and may not accurately reflect those of the firm.