I watched the value of my stock holdings increase at a satisfactory rate over the last couple of days. So I am jumping for joy, right?
No, not really.
But there was an upward correction, and all is right in the stock market again, isn't it?
No, not really.
But confidence is starting to rise again, isn't it?
No, not really.
But President Bush threw his weight behind government assistance for the country's mortgage issue, didn't he?
THAT'S IT!!!
That's exactly why I am not satisfied with the general uptick in the market.
Where the stock market was somewhat based on principled fundamentals and commitment to long-term investment, and driven by market forces, it is now driven by...by...by...emotion.
Good grief!
Yes, it has been driven by emotion for some time. Welcome to our "modern" world after all, where feelings are more important than objectivity. Where immediate returns are better than long-term prosperity. Where uncalculated risk-taking is better boring old saving and "buy and hold" investing.
We sure could use a little good news today, right?
I don't believe the last two days' gains for the Dow are good news. Not from the societal perspective, regardless of how good the gains look financially.
The Dow improved because the government communicated a proposed "amnesty" (my word) for the public relative to their mortgage woes.
Since when is it a good personal business decision to acquire a mortgage that you can't afford?
Since when is it a good corporate business decision to lend money to those who aren't a half-way decent credit risk?
Since when is it a good national business decision to prop up a consumer economy, when the propping will only make things worse in the future (higher taxes to maintain the amnesty or a steeper fall of the stock market)?
Good news? No, not really.
4 comments:
Where the stock market was somewhat based on principled fundamentals and commitment to long-term investment, and driven by market forces, it is now driven by...by...by...emotion.
This not new, grasshoppa...
Yes, it has been driven by emotion for some time.
Oh...you knew that...
as for the "Since When" questions, well...Since Roosevelt's "New Deal", Johnson's "Great Society" and the myriad programs since then, up to and including Bush's wonderful "No Child left Buhine," "The American Dream Downpaymet Act" etc., we Duh-mericans believe we are *entitled* to a mortgage on a McMansion. Who are YOU to oppress the people??
We MUST have our STUFF! If we don't have stuff, we are not growing and expanding, and according to Rush Limbaugh, we will collapse as a nation if we stop.
To that end, the Gov't will keep encouraging us to spend to our eyeballs and forgoe saving and planning for retirement etc. It achieves two goals. #1, it keeps us on the Gov't Teat. #2, it furthers goals of the CFR such as the North American Union, NAFTA, and eventually, the New World Order.
So,...there you have it. The reasons you cite are the reasons I prefer to invest in "growth." When the companies do well, it doesn't matter what the rest of the market is doing (within reason).
I'm up 7.07% on the year. I didn't beat the Dow this year. I'm kinda sad about that, but I have some disproportionate weighting in my portfolio due to a merger prospect (which is coming through, btw! Woo hoo! That will increase my averages later).
Here's a pretty good and informative blog entry on the "New Hope Plan."
Scott,
Thanks for providing the link; it was interesting information...well, accept for one comment that blamed the sub-prime problem on Bush. Duh!
My stock returns have been pretty good (knock on wood). I look for growth stocks, too, based on solid fundamentals - you know, that stuff they teach you in college when you are learning about principled finance and economics. :-)
I feel a P&T post brewing - what will it take to get away from a consumer economy, and to a savings & investment economy? I know, that is heresy today. Oh well.
...brewing, but not crafted yet.
I feel a P&T post brewing - what will it take to get away from a consumer economy, and to a savings & investment economy?
Agrarianism, sustainability, localization of markets and industry, and a reduction in the size of everything.
Funny...I was lamenting P&T this morning as I traveled the blustery tundra here in the south.
Post a Comment