Astonishing New Discovery!

I’m listening to CNBC’s discussion of today’s sell off, and I am astonished to learn that there is Inflation and a Slowing Economy!

Of course, those topics have been discussed in these pages for nearly a year now. The issue with these macro-economic concerns is ALWAYS one of timing. Why? You cannot trade off of macro-economics unless you have a  v e r y  long time horizon. It takes months, quarters and sometimes years for economic issues to work their way thru to the kinda-sorta-eventually-mostly efficient markets. Thats why mating technicals to macro-economics gives you a glimpse into both the longer and shorter term events.

As to today’s issues:  I hate to be blunt, but if on April 20, 2005, you are first discovering that this economy has inflationary pressure –  more than 2 years after the CRB rally began — then Lucy, you have some splainin’ to do.

Just discover GDP has been slowing? (duh) Follow the numbers: Q3 ’03=7.4% (originally reported as almost 9%), Q4 ’03 4.2% (orig 6+%), then 2004 Q1-4 data: 4.5, 3.3, 4.0, 3.8.

I plan on addressing the problems investors face when trying to balance these competing, and often contradictory, time frame issues.

Category: Economy, Investing, Markets

The fruit of Fiona’s labor

Category: Music

PPI and Market Performance

Category: Economy, Markets

The Apprenticed Investor: The Wrong Crowd

Category: Investing, Psychology

Understanding The “Kitchen Sink Economy”

Category: Economy, Markets

Chart of the Week: NYSE Member Firms’ Client Margin

Category: Markets, Trading

Margin Calls and Behavior Shift

Category: Markets, Trading

A Bull Market in Real Estate Agents

Category: Real Estate

Apartment Market Improvement?

Category: Real Estate

Funds Made “Math Mistakes” on Performance Fees

Category: Investing