May 19, 2006

There's No Business Like Stock Business

I admit that this is an emotional reaction but, is anyone else sick of these stock market traders? I am tired of the lurching back and forth, based on today's news. It used to be that we worried about trends, now this bunch worries about what might happen if ten other things happen. One day the Fed puts a sentence in their minutes that inflation might be less of a concern going forward and the market explodes upward. If the same note says inflation could be a concern, traders are jumping out of windows. Low employment is evidently good, unless people get paid and actually spend. Then it might be inflationary. No jobs? Might be bad because no one has money, except if interest rates go down, then it could be good. Then we have oil prices. The Loon of Tehran burps, oil hits $70 and traders scramble for the exits. What if Oil prices fell to $40? Might be a worldwide recession, traders still scramble for the exits. Yesterday they sold off on the fear of inflation. Lions and Tigers and Bears, oh my. Today the market has rebounded some. What changed? Are these just bargin hunters at work? Stocks sucked yesterday, but sucked less today? My personal favorite bit of irrationality remains the "missed epectations" senario. You know, Acme Enterprises earns every dollar currently in circulation, except for one. Analysts expected Amce to make all the money so they sell off. So, what is a mutual fund investor to do? I suggest that we grab or hats and glasses and hold on. Over time the market takes 1.1 steps forward and 1 step back. Wait it out and you will make some money. Tag:

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