Caroline Baum: Five economic reasons not to panic over the stock market rollercoaster

All it took was the return of stock market volatility to turn everything upside down.

Wages are rising! Inflation is back! Soaring bond yields are undercutting stock prices! A new Federal Reserve chairman is creating anxiety about monetary policy! Big tax cuts mean big deficits, and so on, and so forth.

It’s not clear to this observer which is the more significant development: the volatility in stock prices or the variability in explanations proffered for the correction, defined as a 10% decline, in the Dow Jones Industrial Average DJIA, -0.03% and S&P 500 Index SPX, +0.36% from their Jan.

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