« Reality Bites Back... | Main | Move Somewhere... »



Yes, anyone basing investment decisions on those daily overview articles is a sucker, and there's one born every minute. Those journalists just gin up a story people can grab onto so they think they're a player. Another mass-man fallacy with your coffee today? Small guys dutifully thrash their portfolios. Buy and hold? No, you're much smarter than that. You can pick winners! The brokers pocket their fees on all the buy high and sell low orders.
I wouldn't fret too much about stock price fluctuations caused by this kind of noise, though. The economic outlook is affected far more by fundamentals. The current oil supply situation, for example. That's worth worrying about.


Conservative economics doesn't think this is as crazy as it sounds. In fact, Herbert Hoover conciously decided that the way out of the Great Depression was for Americans to clap their hands and believe in the "fundamental soundness" of the system. Hoover's entire economic policy was based on this theory, hence the numerous efforts to display "confidence."

Steve R

It seems to me that today we're getting lots of lip service on how everything is getting so much better and if we'd just keep believing that the crud we're being fed things are better. Business is dying right now and all we get is these glittery reports from the government on how good things are going. Fairy dust will be the next trick or maybe clapping our hands will do it.

The comments to this entry are closed.