All that we see or seem is but a dream within a dream.
Edgar Allan Poe
All things are subject to interpretation. Whichever interpretation prevails at a given time is a function of power not truth.
I was walking down the street wearing glasses when the prescription ran out.
I think one of the hardest things to learn as an investor is that your opinion isn’t worth all that much. You can believe anything you want but the market doesn’t care. The only thing that matters at any given moment is what the majority believes and is willing to bet their hard earned dollars on. You can think the “Chinese stock bubble” doesn’t matter and you can believe that the “Greek debt crisis” doesn’t matter but if everyone else thinks those things matter then you are going to have to accept that and the market volatility that comes with it. People believe what they want to believe, see what they want to see and at times it seems as if everyone you pass is wearing Steven Wright’s glasses. But that’s the way things are, the reality in which we have to operate and you might as well get used to it.
I don’t know whether the “Chinese stock market bubble” was a bubble or not or whether it was important to the global economy or markets. My logical side says probably not on the latter but I don’t think most people would agree with that perception and as the Chinese market stabilized last week, US stocks found a bid, up over 2% on the week. Considering the lengths to which the Chinese government went to stanch the bleeding, I am pretty sure they thought it was important but if the original sin was allowing the bubble to form then stopping its fall surely hasn’t
Originally appeared at: http://davidstockmanscontracorner.com/wall-streets-rx-rose-colored-glasses/