Someone talking about me again?
Posted on 05/03/2009 7:47:08 PM PDT by TigerLikesRooster
Of Fingers and Dikes
BY BRIAN PRETTI | may 1, 2009
The concept of perception versus reality is an extremely important distinction in the current economic cycle and circumstances of the moment. And remember, it’s not that potential misperceptions being priced into financial assets at any point in time are somehow bad, but rather THE issue of importance is making sure we are in touch with factual reality at all points in time so that we hope to make a judgment about whether what markets are discounting is correct or otherwise. Trying to make an informed judgment about this distinction is an exercise literally crucial to ongoing investment decision-making and risk management. You already know financial markets are not moved by reality 100% of the time. Far from it. Human greed, emotion, fear, distress, etc. all get to take turns driving the financial market pricing bus. We all just hope to be smart enough to know when a reckless driver has the wheel.
The equity market has certainly caught the attention of the investment community as of late. Time to take a much needed and very important detour in this discussion. Right to the point, let’s review the character of the credit market. Certainly a general sense of optimism has risen as the equity market has levitated as of late. And that sense of optimism engenders the thinking that the economy and general financial market conditions MUST be getting better because rising equities are simply foreshadowing such an outcome. In other words, history has taught us that equities lead and so if equities are rising, the implication is better days lie ahead.
(Excerpt) Read more at financialsense.com ...
Ping!
Someone talking about me again?
If ya can’t lick em, join em.
That happens lickety-split
That makes me want to puke.
Ugh. That makes me want to raise mean dogs and train them to attack freakazoids, fruitcakes, and nutjobs. Ever notice how some dogs seem to dislike misfits and homeless people? That has always been a mystery to me how dogs do that. I’ve got a dog that hates: mailmen, garbagemen, homeless people, cops, and salesmen...and any person that acts a little differently from normal...like drunks and people with mental problems or nervous ticks. I’m not sure how she does it or why cops are included in that group, but they are according to her rulebook.
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