Thursday, August 04, 2011

First of all, someone with the word "Producer" in their title is not someone I would look to as someone to explain the stock market to me.

Second, despite his title, 5 Reasons Investors Are Fleeing The Stock Market, there really is only one reason the market is going down...

And that is because those who now own stocks have absolutely no confidence whatsoever that there are going to be buyers in the near future... and when there are no buyers, prices go down... and thus, when investors think prices are going to go down, they rush to sell... and that is exactly what is happening, investors are selling, trying to beat the rest of the selling crowd out the door.

And the reason they think that there aren't going to be buyers is because there is no narrative whatsoever that would lead anybody in their right mind to think that stock prices are going to go up.

The economy is in the tanks. The rest of the world is in no better shape. Our President has absolutely no clue how to create an environment that is favorable to growth. While corporate profits are somewhat up, they're not going to continue to go up absent a bump in demand. And people are holding on to what money they have, anticipating higher prices in everything from fuel to health care to food to interest rates.

The only thing that doesn't make sense about the market downturn is what took it so long? It isn't as if these sour conditions weren't present a month, two months, three months ago, was it?