The Stock Market
NEW YORK – “Not a bad view. That’s the mayor’s house right beneath us.”
We were on the 16th floor of a new apartment building, looking out over the East River. With us was President Reagan’s former budget advisor and Wall Street veteran David Stockman – a man who has been closer to the Bubble Epoch than almost anyone.
The Dow rose 183 points on Wednesday – or just over 1% – after starting the day in the red.
William Salomon in Salomon Bros. & Hutzler’s trading room in 1965. Salomon Bros. sold the first ever mortgage-backed bond on Wall Street in the 1980s
Photo credit: Arthur Brower / The New York Times
No Shame in Cash
BALTIMORE – After a year of wandering the globe, we are back in the homeland… and ready to turn in our passport. Travel can be fun. It can also be “broadening.” But the most interesting thing about it is not so much what you find out about other places. It’s what you discover about your home.
You return to the land you once knew, as T.S. Eliot put it, and know it for the first time. So, we are ready to rediscover Baltimore – a place where children refer to handguns as “school supplies.”
The new school year begins in Baltimore…
What Goes Up…
LONDON – It’s 5:30 a.m. We’re sitting in an airport in London waiting for a flight to Dublin. Around us are bleary-eyed businessmen, catching the first flight to Ireland.
On Tuesday, U.S. stocks managed to catch a break. The Dow rose 282 points – or just under 2% – despite another 6% sell-off in China. U.S. crude oil fell a bit. But it continues to trade above $30 a barrel this morning.
He only wants a hug!
Photo credit:Getty Images
The Stock Market and Economic Data
In previous articles we have occasionally discussed the interaction between economic indicators and the stock market. Among the topics we have touched upon: for one thing, the capitalization-weighted indexes can hardly be called “leading indicators” of the economy anymore. In fact, if one studies specific major turning points over the past two decades or so, it is clear that the market seems to “know” very little (at least not in advance).
LONDON – Whew! The Dow shot up on Wednesday morning and fell in the afternoon. Not a good sign [ed. note: indeed, it wasn’t]. We have to be careful not to say anything controversial today. Otherwise, we won’t be able to keep up with the mail. (Catch up on our controversial essays about the Oregon situation here and here.)
The Stock Market and the Economy
It has come to my attention that, perhaps, the great stock bull market is done. To most people, a bull market is good, and its end is bad. After all, a rising market signifies a healthy economy.
Cartoon by Scott Pollack
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- To Hell in a Handcart
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