market ace

Fairy Tales: Reassessing the Market Mindset

The markets no longer have much relationship to economics or financial results. It has become a pure gambling hall driven by fear and greed with traders all operating on hair truggers and large highly leveraged traders depending on computer models and numerous charts to make trades, exclusive of real fundamentals. How can the daily change in the price of oil or gold cause wild price swings in related stocks if market participants are not just pure traders that have made the term "investor" become a relic. Anyone that could not see the Greenspan easy credit bubble about to burst and destroy this country must have been blind. Corporations were also able to "fool" investors with so many stock buy backs that artificially propped up stock prices and consistant lies included in gov't statistics seem to have caught many and blind sided them. Thankfully I have always been conservative and cautious so I was prepared for the bust and now am waiting for the ultimate blow out to get back in the market. This first quarter should present real opportunities as the reality of bad corporate earnings, unemployment and fighting debt problems with more debt sinks in.

One of the greates problems facing any investor today is how to determine "real finncial gain". Since currencies fluctuate radically, inflation/deflation quickly alter asset prices in realtion to other assetprices and debt is being monitized it is hard to know if one is winning or losing. However, in the long run inflation will boost asset prices and those not along for the ride will really suffer.