Tuesday, September 04, 2007

The Logic of the Markets

A quote from today's AP report on the markets:

"Stocks lifted Tuesday, after dips in manufacturing growth and construction spending rasied investor's hopes for an interest rate cut that would bring more money back into Wall Street."

For the past few weeks, every hint of bad news brought a market drop. Today, the market is rising on bad news, because it may bring good news. No why is today's bad news any different from last week's bad news? It isn't. All I can say is that the long weekend revived the optimism of the traders, or else some charismatic guy or lady out on the trading floor convinced them all that this time, bad news is good news.

I don't object, I'm heavily invested in having the market go up, I just find the "logic" that these supposedly brilliant guys and gals apply to it to be, dare I say?, laughable.


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