The Tale of Two Markets...

Recently, the media and general public are asking the question, “Why is the market doing so well?”  The recovery seems to be fictitious for some.  It strikes at just how scared the public may be from the most recent Great Recession.  It feels that some have forgotten the ABC’s of what “the market” is.  It reminds me of a Seinfeld episode http://www.youtube.com/watch?v=XEL65gywwHQ when the infamous Kramer and Jerry have a discussion about “write-offs” – the conclusion of which was that neither of them really understood what a “write-off” is.  It’s been my experience that most of the general public really have no idea what “the market” is.  We have never been taught this and now it has become a social/societal faux pas to appear as if you don’t know what “the market” is.  Simplistically, we must all remember the market is nothing more than a gauge of the value of public companies both near and abroad.  If the market is doing well it’s because companies are doing well, not some vague correlation.  If companies are doing well then eventually the economic tides will raise ‘you and yours’ boats.  In all actuality this recovery probably has some existing bandwidth which will cause the public to question even louder – what is going on – or in other words what is the market?

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