Lessons From Last Week's Craziness

It might be tempting to conclude that there are no lessons to draw from the wild ride in financial markets last week. After all, the Standard & Poor's 500 Index closed 1 percent higher Friday, and the Dow Jones Industrial Average and the Nasdaq 100 Index ended up recording their best week in almost two months. And some might even dismiss the unusual volatility as the reflection of nothing more than a bout of market irrationality that is temporary, reversible and inconsequential.