This stock market isn't acting right. Up sharply one day, then sharply down the next. Bad earnings are reflected in crushed stock values, even for a penny or two. Good earnings result in crushed stock prices, too. The exception is really superior earnings and those, of course, are few and far between.
Is this Greenspan's fault? Yes, but not for the reason you think. Hiking rates one more time is bad enough, but the real culprit is the shrinkage of money supply. Greenspan is taking away all the excess liquidity that was poured into the market late last year to fight the phantom Y2K "problem." Less money fed into the system, the less available for stock purchases. It's money that greases the wheels, plain and simple. A market that can't hold its rallies, is not a healthy market. So, beware, fellow traders. |
