Hello everyone,
I note with great interest the financial market gyrations that have been taking place recently. We are up 200 points and then down 200 points and we seem to be confined within a well-defined range: 7900 to 8300 on the Dow Jones Industrial Average. Hmmm. The interesting thing is that the movements are now associated with news.
The types of gyrations that we saw in the fall (no pun intended), the kind that led to me starting this bloody blog in the first place, were being driven by pure emotion. Panic (!) ruled the trading days. However, the financial markets have gone back to a healthier state where they are again discounting the future as described by the daily news and not the future as imagined by pure fear. The ranginess may be making you sea sick, but the markets are actually quite rational again. This is yet another sign that things have changed for the better. Lastly, the linking of financial market movement with real events gives me additional confidence in the market bottom that I called back in November.
Dead horse beating: it’s still a good time to be buying shares in businesses.
Be well!
Jason
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