<$BlogRSDUrl$>

My personal musings about anything that gets on my radar screen--heavily dominated by politics.

2004-05-07

Again With the Stock Market Logic

From MSNBC:

Stocks Fall Following Strong Jobs Data

"Investors succumbed again to interest rate fears Friday, sending stocks tumbling after the government reported blistering job growth in April that far exceeded Wall Street’s expectations. The Dow Jones industrial average finished the day with a loss of 123.92 points, or 1.2 percent.

The jobs data gave further credence to predictions that the Federal Reserve would hike the benchmark lending rate by at least a quarter percentage point at its next meeting in June. Many analysts expressed frustration that the market’s weeks-long angst over rates was distracting investors from a very positive economy and strong corporate earnings.

“Eventually, we’re going to have to come to the realization that the reason rates are rising is because of solid economic growth,” said Chris Conkey, deputy chief investment officer at Evergreen Investments. “The Fed has clearly indicated that they’re going to raise rates, and maybe that will let us start the transition into other opportunities.""

Yeah. Again. So, bad news is bad (though there hasn't been much of that lately on the economic front); mediocre news is bad because is makes us uncertain; and good news is bad because is fuels fears of the inevitable.

I'm so glad I didn't choose stock speculating for a career.

Posted by: Michael / 5/07/2004 11:33:00 PM

Weblog Commenting by HaloScan.com

This page is powered by Blogger. Isn't yours?