This Doesn't Sound Like a Wall of Worry

A traditional view is that the stock market needs to climb a "wall of worry." A bullish market will continue to climb despite economic risks or uncertainties that make most investors nervous. By the time these perceived risks have been resolved and investors feel more comfortable, the market tends to decline.

This year's incredible swing from the depths of despair to unbridled optimism about the impending economic recovery has been astounding. Many have remarked that the traditional "wall of worry" has been lacking from the markets recent run, as investors see nothing but good things on the horizon.

This "lack of worry" seems to have been intensifying lately--

Even If Stock Selloff Is Coming, You Don't Have to Join Crowd

The prevailing sentiment seems to be that even if a correction does come along, it will be healthy for the markets. Now is not the time, market bulls say, to be taking money off the table....

A correction could come, but it won't be anything devastating-perhaps 7 or 8 percent-and will be a healthy detour on the market's way up....

A correction, then, could present a buying opportunity.

Unintended Consequences of Cash for Clunkers

The government has taken innumerable steps to stimulate the economy and bolster certain "indispensable" industries. But what will be the unintended consequences and unforeseen residual impacts of an unprecedented level of government intervention in the free markets?

Already, here's an article about the upcoming traditional peak car buying season thrown out of whack by the timing of the Cash for Clunkers program and the higher prices paid by consumers as a result.

Construction Falls and Misses Views, But Also Rises

The same data, the same article, slightly rewritten to better match the Market Summary to the left.

Version #1


Version #2



The press sure helps us understand economic data better by warping the interpretation to whatever the stock market is doing at the moment.

Foreclosures rise 32% (or just 7% according to AP headline writers)

Foreclosures for July rose by 32% compared to the same time period last year. Or if you want to make the headline less drastic, they rose a mere 7% comparing June 2009 to July 2009.

The current mainstream media practice seems to be to portray any economic data release in the most positive or "least bad fashion."

Hooray for journalism!

Job Creation

The Federal Reserve Bank of New York is on a "hiring spree."

They plan to hire 160 people this year, which will go a long way to replacing the 140,000 jobs lost at private financial firms.