Market Dive - Perspective
Discussion
In the light of the massive ,arket dives of recent days (today being the worse in a while), I want to remind people that money matters is an emotional thing as much as it is a science. Therefore, we have to give equal credence to the human emotional factor as much as the hard numbers IMO. The recent hard talk by both spectrums of politicians has finally managed to "scare" even those that usually exhibit calm. As a result, those who would invest in a business expansion, move on an aquisition, launch a new product, etc has decided to sit tight to see how the climate looks. Those who made recent money on commodities are cashing out their profits and staying pat to see if this administration has any great ideas or wait until the next one. Note that in this mass selloff, Bonds have remained still, no big sell off; those are remaining a safe haven.
Emotion, whether we like it or not, gets as many seats at the financial table as financial science.
A move or action that raises spirits or is perceived to create a new and better business climate will raise consumer confidence, consumer confidence is the positive emotion that convinces people to turn loose of their money. That in turn can turn the economy around; money is out there, it just needs to circulate.
Ironically, it is a positive emotion that will be needed to spark a positive move in the science of money. All IMHO.
Emotion, whether we like it or not, gets as many seats at the financial table as financial science.
A move or action that raises spirits or is perceived to create a new and better business climate will raise consumer confidence, consumer confidence is the positive emotion that convinces people to turn loose of their money. That in turn can turn the economy around; money is out there, it just needs to circulate.
Ironically, it is a positive emotion that will be needed to spark a positive move in the science of money. All IMHO.
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