The Deipnosophist

Where the science of investing becomes an art of living

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Location: Summerlin, Nevada, United States

A private investor for 20+ years, I manage private portfolios and write about investing. You can read my market musings on three different sites: 1) The Deipnosophist, dedicated to teaching the market's processes and mechanics; 2) Investment Poetry, a subscription site dedicated to real time investment recommendations; and 3) Seeking Alpha, a combination of the other two sites with a mix of reprints from this site and all-original content. See you here, there, or the other site!

19 May 2010

The markets' coming squiggles

Yes, I know all about the 'news' coming from Europe, England and Germany especially, that targets short-selling. (Really, the short sellers themselves.) No, none of it surprises me; please recall my comment from Monday's post, "... a future in which governments impose confiscatory taxes against ‘evil’ investors (of all types and time frames), which begets more selling to pay the tax" seems clearly in play. Unfortunately, and as I argued, the short-sellers represent not the problem, merely its symptom. (Short sellers do represent liquidity, something the markets scream for, so the Europeans efforts amount to shooting themselves in the foot.) The true problem is the spend spend spend philosophy of politicians, who effectively prove to be spenders, not managers. Whatever happened to the concept of thrift?

The markets follow, almost lockstep, the trajectory of the US$... although it thinks it follows the ongoing travails of the . But that's okay, the net effects remain the same: Wild oscillations in all markets, especially during overnight sessions, with its lesser liquidity. But what of today, and the near future -- will the market crash here, now, as some market prognosticators suddenly believe?

This post continues on InvestmentPoetry. See you there!
-- David M Gordon / The Deipnosophist


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