Thursday, November 20, 2008

Minyanville posting: Resisting Market-Psychology Extremes

This week's Minyanville posting picks up where last week's left off.

"18 months ago in my last appearance on what was then called “Kudlow & Co.”, I expressed serious concerns re the level of enthusiasm for the markets and in particular the Goldilocks economy. The Great Moderation was the anchor for the economic nirvana that supported ever-higher equity prices. Then the credit crisis erupted and the rest is all too well known.

But emotional extremes, the animal spirits had not fully run their course, as the enthusiastic residue had not gasped its last breadth. Commodity prices soared in the summer of 2008 led by predictions of $200 a barrel of oil. Then came the second wave of the credit crisis and with it fears of a global slowdown and demand destruction.

Now, when we flash forward to today’s environment, we see..."

To read my Minyanville articles including this week's posting, click here

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