A few years back I wrote (and think it got picked up somewhere) a satirical piece about a giant comet about to hit earth. The market initially plunged on the news, but bounced back when analysts saw it as a buying opportunity, and ended the day up by a heap.
Yesterday’s news: Horror in France that’s a killer for tourism and other industries. The Japanese economy officially entered recession. All sorts of other bad economic news here and around the world..
And the markets response to this news? Nikkei goes up. Europe stocks go up. Our Dow rose more than 230 points.
Central banks key their policies off market behavior. Pols set their countries’ overall economic policies based on this behavior. And market behavior is moving rapidly from the idiotic to the utterly insane.
Be afraid. Be very afraid.
Wall Street Poet Blog 