…and they’ll come home,
Wagging their tails behind them.”
Little Bo Peep
A lot of wisdom can be found in nursery rhymes—maybe we should look more closely at their message.
It seems to me the stock market should be left to its own resources. The market is its own entity and it doesn’t really like to be manipulated.
When this current phase of the downturn started over a week ago, the market responded upward on any indication the “Rescue (my butt) Plan” would fail, and it took a downward path when the bill seemed to be in favor. That’s when Congress decided it should be in control of the market’s future. (And you can see what has happened to the market.)
When investors—the buyers and sellers—are left to the mercy of the market, the market will control them—and itself. Sometimes it has to adjust its shorts, or bra-strap, but this is perfectly normal.
Years ago I was asked by an elderly neighbor about my roses. He wanted to learn my “secret” so that he could have pretty roses, too. I explained the “secret”, and his roses soon were just as pretty as any on the block. Before then, he would try to make the roses respond to his wishes, just as we try to make the stock market respond to our wishes. The “secret”? That’s easy. Only the roses know the “secret”—they know more about growing pretty blossoms than I do. So I just stick ‘em in the ground, water 'em occasionally, a little plant food now and then, and let 'em do their thing. (Garden experts can be helpful along the way.)
Just let the stock market work its own way—it obviously knows a whole lot more about itself than we do. Especially more than Congress does. (Financial experts can be a little helpful along the way.)
Too many lawyers are trying to grow our roses, or manipulate our stocks, when they should stick to chasing ambulances. We need more “gardeners”, or financial experts, in Congress.
Here in my Congressional District we are fortunate to have a financial expert (an independent) running against Jeanne Schmidt ® for her seat in Congress. (A doctor (D) is also in the running, but we have no real need for bandaids and iodine at this point.) But you should be here to listen to this debate. This guy can explain the what and wherefore of the workings of the stock market very well.
His suggestion?..leave it alone and it will come home…
(more or less).
In November, let’s replace the ambulance chasers with people more familiar with finances. Businessmen, stock market advisors, anybody who can count without removing his/her shoes.