"You gotta believe", said Tug McGraw, pitcher, NY Mets, 1969 Miracle year.
I wonder if psychology has much greater influence than the quality of the numbers? Or, what are those numbers need to be compared to? Are the GDP's of Japan, Germany, etc. any different than US numbers? Eventually the numbers will catch up with reality, just as the hyped hopes and gropes of Japan's economic stimulus were good enough to cause substantial (but temporary) spikes in Nikkei225 from 1991 to today. In 1991 (20,000 to 25,000), mid 1992 (15,000 to 20,000), 1995 (15,000 to 22,000), and 1999 (13,000 to 20,000). It is recovering from April low of 7,800 to 10,800 today.
finance.yahoo.com^N225&d=c&k=c1&a=v&p=s&t=my&l=on&z=l&q=l
What caused those spikes in N225? What made those spikes last 2 to 6 months? And what made them failed?
What's causing spikes in US market this last 4 months?
They do occur despite lousy underlying basis. |
