Episode 8: These Were Our Favorite Stories of 2015

Joe Weisenthal (0:18)

So, we were, it was the same job, we were still just in charge of the US stock market at the time.

Chris Nagi (0:24)

He was the team leader for stocks.

Joe Weisenthal (0:26)

All right, everyone, we're here to record the look back at our favorite stories of 2015 episode of Odd Lots. I'm Joe Weisenthal, managing editor at Bloomberg Markets.

Tracy Alloway (0:40)

And I'm Tracy Alloway, executive editor of Bloomberg Markets.

Joe Weisenthal (0:43)

And we've assembled a fantastic team of Bloomberg News people, reporters and editors to talk about what were the great market stories of 2015 Could you all just introduce yourselves real quickly?

Chris Nagi (0:56)

I'm Chris Neitchi, the managing editor for stocks at Bloomberg News.

Matt Boesler (1:00)

I'm Matthew Boesler, I cover the Federal Reserve.

Max Abelson (1:02)

I am Max Abelson, Bloomberg News reporter.

Ed Hammond (1:05)

I'm Ed Hammond, I cover deals for Bloomberg.

Matt Levine (1:07)

I'm Matt Levine, I'm a columnist for Bloomberg View.

Joe Weisenthal (1:10)

All right, let's get going. We'll start with you. Chris Neitchi, you cover stocks. What do you have for us?

Chris Nagi (1:15)

Speaking as the managing editor for stocks at Bloomberg, and as sort of a connoisseur of Armageddon scenarios, I sort of have to say that the August 24th, the late August, sell-off in the stock market is my favorite story. It had everything. It had everything from this is the big one in the bond market, to this is the big one in the volatility market. It had sort of a flash crash. It had humans are the problem, humans on the floor of the nice here, the problem. It had China.

It had the dollar. It had pretty much everything that could be pulled into a thesis that this is the end of the world, that this is 2008

And as a connoisseur of these things, one thing that you notice over the last five years is generally they haven't come true. So I just thought, you know, everyone who was hoping for the end of the world, let all of their guns fly on roughly August 24th. There was quite a selloff, it was painful, it was not pleasant for anyone in the market. And then two or three months later, we're merrily on our way, and it's just looking like, you know, just another one of these ripples. I mean, this is clearly the biggest of them all, but it's pretty much repaired at this point. I just think it's the story of the market since 2008

Tracy Alloway (2:29)

Don't you love how healthy corrections are always the corrections that have stopped?

Chris Nagi (2:33)

Right, there's that, right. As long as they don't turn into 2008, everyone's happy to have them. I mean, I think there's something to be said for that. The difference, what's normalcy in the market? I mean, you go two and a half years with the VIX at like 15 That very sound arguments could be made that that's the weird thing. And things like the end of August, that that's kind of what's supposed to happen. I think people are aware of this fact. I mean, again, right, you're absolutely right. As long as it starts around 12% or so, they're willing to say that's what's supposed to happen.

Joe Weisenthal (3:03)

I remember like that morning, the Dow opened down like about a thousand points, was it? And then there was like a really like within 20 minutes, it was like sharp at one point was like down 1%. And then like it started selling, but that was just like an absolutely unbelievable morning.

Chris Nagi (3:18)

Yeah, there's no doubt that ranks in the top couple of days.

Joe Weisenthal (3:20)

Was that like, what's your favorite day of all time? Not just this year. Did you have another day that you've loved?

Chris Nagi (3:25)

That would be the flash crash. No question about it. In March, May of 2010, I mean, that was the weirdest thing. And by, you know, that was the first one of these things. That was the first really machine-fomented just freak out in the stock market. Nobody knew anything, had any idea of what was going on. Now, we've seen flash crashes, and I think that's part of the problem that we see any decline, any rapid decline. We say, that's a flash crash. That's definitely something broken. It very easily might not be something broken. I actually have to say, in retrospect, that again, it looks like sort of what's supposed to happen in the market every once in a while, maybe a little faster, but.

Joe Weisenthal (3:56)

Thanks, Chris. All right, we're here with the great Max Abelson. Max, what was your favorite story of 2015?