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How the Market Works

Rock & Roll High School

Posted by kdadmin on October 10th, 2014.

Think back to the irrational days of high school. Remember those awkward, hormonal days when everything was the most-important-thing-in-the-world-at-this-particular-moment-oh-my-god-as-if-no-way?

So does the current stock market …

The stock market is at the crisis point in the typical high school movie. You know the place, where boy and girl are not sure if they are going to be boy and girl because of girl’s obnoxious current boy and boy’s dorky sincere social awkwardness. Yet somehow boy did an emotionally vapid thing for which girl will forgive him because he’s only a boy with a developing brain and a good kisser. Of course, it’s all going to come to light in the next painful three minutes, and by now you wished you’d had a stiffer drink or gouged your eyes out so you wouldn’t have to witness to anymore of this sophomoric tripe.

Yeah, that’s where we are in the stock market. Everything that was cool four days ago is no longer cool, and everything that wasn’t cool is now totally cool. Man.

It’s stupid.

All the leading indicators are on track. The unemployment rate hit a six year low (below 6%), the dollar is significantly stronger, QE is likely to end, AND Alcoa kicked off the earnings season with a positive surprise.

In other words, when high school was over, we all realized it wasn’t such a big deal. The same holds for our current stock market cycle.

Welcome to your post graduate studies.

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