Yes, when the market goes down, it's ALWAYS pinned to some outside event. During this bear market alone, it's been (in approximate chronological order):
1) BubbleBoy raising rates
2) Cali energy crisis
3) Shrub/Snore election controversy
4) WTC
5) Enron
Of course, no "reason" is required for it to go up...it's manifest destiny! (Yeah, right!!!)
The point is, no one but dumbazz bears like ourselves, Fleck, Hickey, Tice and Noland (and perhaps Chanos, Rocker and some of the hedgies) would bother to point out that none of the above matter unless stocks are horribly overpriced in the first place! For example, in the 1960's the markets roared ahead despite horrendous political turmoil and and ongoing war from 1965 on that claimed 50,000 U.S. servicemen's lives. HOWEVER, valuations were much less stretched, debt levels were much more reasonable and government spending was increasing so the bull lived on. It's so freakin' obvious, and yet it's like the emperor's new clothes...the media and pundits refuse to acknowledge what's right in front of them. |
