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News Tip: Market Volatility Driven By Psychology, Not Fundamentals, Experts Say

As much a result of our political economy as any financial factors, says Charles Becker

Two Duke University professors are available to comment on the recent swings in financial markets.

Charles BeckerResearch professor of economics at Duke Universityhttp://econ.duke.edu/people/becker/Quote:"What we're seeing in the markets is as much a result of our political economy as any financial factors. The political equilibrium we are now in leads to huge deficits and a current account trade imbalance, rather than investment spending."

Emma RasielAssociate professor of the practice in economics; director of Duke's Financial Education Partnershiphttp://econ.duke.edu/people?Gurl=%2Faas%2FEconomics&Uil=2916&subpage=profileQuote:"When markets are this volatile, you can be sure that a lot of trading activity is driven by psychology, not fundamentals, which makes it particularly hard to predict what will happen over the next few weeks or months. Anyone who tells you with confidence where this market is going in the short term is kidding herself."