Imagine the following conversation....Mom, the good news is that my temperature is down and my white cell count is back to normal. I feel much better. The doctor says I am definitely on the road to recovery. But I am really depressed. The doctor says he will have to reduce the amount of pain medicine I am taking.
I don't usually post short blurbs on Thursdays. But it is 9:20 am and the stock futures are falling like a rock. According to one Bloomberg article the markets do not like newly published indicators that show a stronger economy because it means the Fed may start tapering soon.
Does this make any sense to you?
How can good news be bad news?
Or maybe the so-called good news about the economy is really bad news about the economy? These snipets of news about last month's unemployment and inflation are simply heralding bad news about future inflation and unemployment?
Maybe the stock market was already over-valued and the sell-off this morning has nothing to do with monthly economic data.
Maybe journalists have to write about every little thing that happens.
Lots of maybes. My first reaction upon reading the news this morning was to try to understand a market that hadn't even opened yet. My better senses tell me to ignore all this noise and go back to playing darts.
It will be interesting to see how all this plays out in the coming months....
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Seems it is all centered around earnings reports, but I believe one must throw in the "unrest" in Egypt, too. Any disruption of commerce through the Suez Canal will have a calamitous impact on the global economy and especially on oil availability which in itself seems to impact every other market.
ReplyDeleteAs I said -- lots of maybes. The market seems to be brooding again this morning.
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