Elevator Econ

Dow up 100, down 200, up 300, down 50. So what? Daily elevator market reports are meaningless. Has the actual level gone below 10,500 or above 11,500 in years? No. Where else is there to put money? CD’s, money market, bonds, treasuries? Might as well put your money under the mattress. Same return. Not that there’s anything wrong with that. Risk. Reward.

It’s silly to invest in individual stocks these days, value analysis no longer predictive nor rational. Management, balance sheet, free cash flow don’t drive stock price. Quants play games with derivatives and other new financial doo-dads such that mere mortals and especially rating agencies and regulators can never keep up. So, if you’re in equities, stay in industry sectors that make sense for the long term. And, if you’re a geezer, stuff your bucks under the bed.

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