With the markets turbulent action this week, perhaps we should be referring to Wall Street as the “Big Uneasy.” On the one hand, we had pundits telling us that Greece, Spain and the other PIIGS were already cooked into the markets. Therefore, the worst was already accounted for an everything going forward could only help improve the situation.
Until Thursday… when many of these same pundits declared a world economic crisis… another recession… and doom for the markets.
… which lasted a day.
And that’s why I think Wall Street should be named the Big Uneasy!
The same themes as several months ago… prior to the silence of January – March of this year, re-emerged this week. Obviously, the European challenges were present. But we also added in the jobless claims, the costs of the TARP bailout, the QEs, etc… all without much bang for all those bucks.
Add to that the Philadelphia Fed manufacturing number which took a dramatic 16.6% drop rather than the flat reading the so-called “experts” were predicting and it’s no wonder Thursday was one of the worst days on Wall and Bay streets in recent months.
You know… if you are always trying to predict, explain, rationalize, and foresee what will or has happened in the markets, you’ll always feel uneasy. Just when you think you’ve got it figured out, something new emerges and the markets do the exact opposite of what you predicted. Then, perhaps on a Thursday night like the last, as you predict a horrible Friday, things bounce back a little.
We continue to resist the urge of 99.9% of investors… the insatiable desire to “predict” the market. Instead, we prepare ourselves… which is why this week, we saw one position sell for a profit, and the rest remain in positive territory.
Chill… enjoy the summer… and let’s not let investing in any stock exchange control our lives!