Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Wednesday, November 08, 2006

The Effect of Elections on the Stock Market

None. It, just like every other story is a one day event. The market will go up or down - it always does. The sky won't fall the seas won't part and we will (probably) not see the second coming before nightfall. The country is going into recession or not - no political party since the beginning of time has been able to figure out how to change the business cycle. There is simply too much money involved.

While the Federal Government commands a great amount of money the impact of the Federal Government on anything other than war and pestilance since the great depression of 1929 has been minimal. That's because there is so much more money in the economy right now that the Federal Government doesn't stand a chance.

So when you hear the bobbleheads all repeating today's soon to be favorite litany about the "market not liking uncertainty" stand up, turn around, point your posterior at the TV and drop trou - because that is the only respect that that analysis deserves.

Thursday, November 02, 2006

Economic Fears Spook Stocks

What a bunch of absolute crap - if you believe that for an instant you are as big a moron as the moron who wrote it. I know, I know they're just doing their job - but boy it would be interesting every little once in awhile to see some semblance of truth - the market is way way way oversold - it must rest.

Here is the facts jack - the reports are of times past - I.E. the bottom of the economy was months ago - we are now in the recovery - the stock market is not the economy. How many times do you have to hear that before it sinks in - the stock market is a discounting mechanism - all the news is in the market 6 months before you hear about it. So what happened six months ago - the stock market went down. Then it started to go back up again. Now it must rest because it went up so far and so fast (in anticipation of a Democratic win in the House and Senate I might add) it needs to catch its breath and take a rest. It truly is that simple - 10 or 20 days from now it will resume its progress upward again and all will be right with the world.

Morons.