So many things I think about
When I look far away
Things I know, things I wonder
Things I'd like to say
The more we think we know about
The greater the unknown
We suspend our disbelief
And we are not alone...
Apologies to Rush for the hijacking of their song and lyrics for this post but I think many of our readers will get the point and subtle reference, even if Neal Peart and company didn't intend associations like I'll make.
Many believe that there are patterns (rhythms) to the market - particularly the stock market, but the broader investment marketplace as well. A friend posted a link to this blog post on Facebook today. Regardless if you buy into the rhythms or not, it should cause you to pause and at least reflect on it. Combined with the current federal budget situation that we're facing as a country, it is all the more troubling.
A liberal on Facebook, in response to a comment that the market dropped over 300 points on the day after Obama was re-elected, pointed out that the market has gained since he took office when it was 7,949. I was curious and went back to look at the data and my friend was incorrect. When President Bush left office, the last trading day (January 16, 2009) had the Dow closing at 8,281.22. The Dow then closed on President Obama's inauguration day at 7,949. Down over 300 points. Hmmm. The markets will rise over the long haul, it is their nature. However, markets react in the short term to immediate events. This isn't the kind of reaction we need from the markets as we face the economic troubles we do. And yes, while we may be suspending our disbelief in the results of this election and we are not alone, we should be aware of these mystic rhythms.