Stock market volatility highest since 2011, fueled by interest r

Stock market volatility highest since 2011, fueled by interest rate uncertainty

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Photo of a NYSE trader after stocks fluctuated Monday, August 24th. Photo of a NYSE trader after stocks fluctuated Monday, August 24th.
LUBBOCK, Texas -

To say the stock market has been volatile this month may be an understatement.

In fact, the DOW has either gained or lost more than 350 points in eight of the past nine trading sessions.

"It's problematic today because people haven't experienced this in a while," First Bank and Trust President Greg Garland said.

Specifically, the stock market has not experienced this kind of volatility since 2011, according to DOW Jones market data. 

"You hear trade wars, you hear trade deficits, you hear global unrest. Those things start kicking in. I mean, with what's been going on the last two weeks, there's not enough brokers or dealers out there to handle the volume," Garland said.

Garland said another key reason for these ups and downs is interest rates. 

This is because of unexpected rate increases and uncertainty about the federal reserve's intentions heading into the new year. 

"You know, they increased it a quarter in December. My anticipation was that they would have some dovish comments about hey this is probably the end for a while," Garland said. "Instead, I think what you're seeing in the stock market is reaction that there will probably be a couple more increases coming in 2019. It's got a lot of people scared."

Even in the midst of reaching bear market territory, Garland said as long as these conflicts are solved, get ready for another rebound.

He said many stocks are being oversold right now, and it could be the biggest buying opportunity in the last 10 to 12 years. 

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