Tim Travis'  Instablog

This is an interesting article on the risk on/risk off mentality that has existed in the markets since 2008. There is a big difference between and investing and trading and I think this mentality pertains to trading. Benjamin Graham developed the concept of "Mr. Market" and the primary premise is that over the short term the market can behave erratically, while over the long term stock prices and business values converge. When one is investing the biggest variable is the amount of time that it will take for prices and value to converge. Generally it doesn't take longer than 3 years but because of the ferocity at which the global economies have been hurt by this string of financial panics, I believe that it is causing this disconnect to last longer than it does in a healthier market. Government and central bank involvement has dominated markets, and things like mandating that banks can't buy back stock, have hurt confidence, and delayed the convergence. By the end of this year we should have more political clarity and hopefully Europe will be closer to a fiscal union but it is anyone's guest as to when the sentiment will change to a more rational one.

http://online.wsj.com/article/SB10001424052702303768104577460303808628084.html?mod=WSJ_hps_MIDDLENexttoWhatsNewsForth