When Good News Is Bad – Hedging on an Improving Economy …

stock market… and the inverse as well.

Not a new idea about economic distortions but one that is nicely and concisely stated.

Check out  The perversity of markets when bad news is good (Pitts: CBC News: July 17 2013).

But here is the difficult question: What kind of distorted system have we created when the stock market has become a hedging mechanism against a country’s general economic well-being? It’s as if the markets had been created as a derivative constructed to make money from a weakening economy. And make no mistake, there are huge fortunes – almost every penny invested in stocks – gambled on this derivative. And that kind of money has power.

What economic projections do you put stock in? Whatever they may be, there’s a need for a whole heap of paying attention to advance notices.

Author: Tim Lavery

Aim High Salmon Arm It matters

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