Wednesday, October 5, 2011
"Stocks Rise on Hopes for Europe's Banks" - AP headline
A most empty, meaningless word. Hope. Essentially means wanting something positive to occur but really having no direct control over the outcome. Examples would include: "I hope it rains tomorrow" or "I didn't study for the test but still hope I did well". Its emotional sentiment based on guesses, assumptions and wishes.
That's how the market is trading right now when it goes up as it did today.
Thought this quote from an AP article put it best:
"The market is trading on sentiment right now, not fundamentals," said Rob Stein, head of Astor Asset Management. "People are hoping that the bounce yesterday means that we've hit a bottom, but the problems that were in the economy Monday haven't changed since then."
Now see, here's the thing-- if enough soulless, greedy investors and traders can convince one another that all the problems in Greece and Europe can be magically solved like watching a TV sitcom, then they can manipulate the market into rising up enough to sucker clueless mom & pop investor to put their precious money into the market.
That's always the name of the game. No different than any other hustle.
~ Theme song lyrics: Felix the cat, / The wonderful, wonderful cat. / Whenever he gets in a fix / He reaches into his bag of tricks...
I can't say for certainty what will happen with Greece. When one possesses, like Felix the Cat, an endless bag of tricks and schemes at their disposal, as governments and banks do, its very possible to keep kicking the can again & again. So many tricks and schemes to choose from- creation of special centralized banks, re-liquidation of banks already bankrupt using the citizens' taxes, structural defaults in every way but in name, credit expansion, artificially low interest rates, currency devaluation, on and on...
Nothing ever changes because powers that be don't wish it.
One thing is for certain- I wouldn't invest $10 in this market.
Posted by Susquehanna at Wednesday, October 05, 2011