Stock Market Sense

It has been said that the stock market doesn’t make any sense. People say that because the market can move up in the face of so much bad news.

Well, that makes sense.

The stock market movements don’t make any sense because they are a barometer of man’s collective greed and fear when it comes to the decisions of where to store one’s money. These decisions are then influenced by the mainstream media and the fear or unbridled enthusiasm that our ruling class decides to gin up through its domination of said media.

We can be going through hell and high water, but if the mainstream media chooses to largely dismiss these events as not very important, then people will gain a sense of false confidence and continue to invest.

On the other hand if the main stream media, controlled by the ruling class, chooses to hype up a more trivial event into to an end of the world scenario, then people will obviously flood out of the market.

Thus, the market is largely guided by the raw emotions of greed and fear.

Rationality often has little to do with the stock market.

We are fooled into thinking that rational behavior guides the stock market, because we do think before we choose to place our money in a particular stock.

Yes, I have reviewed the balance sheet and profit and loss statement from Amazon. It seems logical to me that Amazon will be around for a long time making money. Therefore, I think that Amazon will make money and so I will continue to place my money there.

Unfortunately, this rational thought exists within a global cloak of collective emotion about the stock market.

Our rational thoughts do not exist as an island separate from that cloak.

If there is an event like the collapse of Bear Stearns, precipitated by the subprime mortgage crisis, AND the media controlled by the ruling class, chooses to hype this up as the end of the world (it’s not), then people’s fears will be exacerbated.

Human beings tend to go along with the pack. We laugh at sheep, but we are sheep.

It is the rare individual who can hold his or her ground in the face of that stampede.

And so people will be begin to stampede, and that stampede will cause the stock market to go down.

Thus, fear and greed, largely controlled by the mainstream media, largely controlled by the ruling class, often decides where the stock market will go.

It was fear mongering that largely caused the collapse of the stock market during the subprime crisis just as it was fear mongering that caused the stock market collapse during the Great Depression.

The movements are not senseless.

They make total sense.

Sincerely,

Archer Crosley

Copyright 2024 Archer Crosley All Rights Reserved