• 658 days Will The ECB Continue To Hike Rates?
  • 658 days Forbes: Aramco Remains Largest Company In The Middle East
  • 660 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,060 days Could Crypto Overtake Traditional Investment?
  • 1,065 days Americans Still Quitting Jobs At Record Pace
  • 1,067 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,070 days Is The Dollar Too Strong?
  • 1,070 days Big Tech Disappoints Investors on Earnings Calls
  • 1,071 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,073 days China Is Quietly Trying To Distance Itself From Russia
  • 1,073 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,077 days Crypto Investors Won Big In 2021
  • 1,077 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,078 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,080 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,081 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,084 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,085 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,085 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,087 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Market Musings: Oh, The Horror!!!

I love these headlines from MarketWatch when the market is expected to be down at the open.

Figure 1. MarketWatch
MarketWatch Headlines

Let's face it, market participants can't even tolerate a pullback of even a half percent without expressing grave and deep concern. I think the headline should read: "Opportunity To Buy". After all, isn't this the pullback that everyone is waiting for? Furthermore, why concern ourselves with pullbacks and down days when it has been determined that the market can only go one way -- up?

How about the headline on gold? (See inside the red oval). Gold takes a "tumble"? A tumble would be something serious like a major correction in a bull market. This was a measly, minor insignificant pullback within a much larger context of a secular trend. A 2% drop within a 30% run up over the past year is not a tumble.

To understand the current market dynamic and the sense of desperation of propping up asset values so that there is no pain, all you need to do is look at yesterday's intraday chart of the Dow Industrials. (See inside the black oval.) At 1 p.m. on no news, the market "magically" reversed course, and of course, it was a straight shot up to produce another winning day.

Lastly, let me make a comment in general. I recently played golf in a celebrity - pro - am charity event. I was an amateur! The talk turned to the markets. Everyone was happy that the markets were up, and most did not care how they got there. Most of these high net worth individuals had not heard of POMO or even were aware that the Fed was targeting asset prices. For many, with 401k's or IRA's, the market was their only source of return or way to save for retirement. Housing prices were depressed; business was ok - more surviving than thriving; the stock market was up and so were their portfolios. And that is all that mattered.

Update: I just checked the market mid - morning and note that it was up thus validating my notion that the headline should have read: "Opportunity to Buy". Another unrelenting straight up shot to the old highs. Darn, missed another one.

 

Back to homepage

Leave a comment

Leave a comment