Is it a new bull market or just Smiley Faces?
Wall Street cheerleaders can barely contain themselves. The current stock market advance is the strongest since the 1930's. And now economic data appears to be telling us the end of the recession's just around the corner. They've even invented a new term to get us in an optimistic mode: "green shoots."
It reminds me of something my youngest son pointed out to me a while back. He noticed that all watch and clock ads show the time as 10:10. Why?
Look at a clock at 10:10 and what do you see? A smile. Apparently the feeling is that the smile creates a positive reaction to the ad.
It's manipulation, isn't it? But isn't that what a lot, if not all, advertising is about? Manipulating your feelings? They're selling a product and they want you to buy.
The point here: when it comes to Wall Street cheer, watch out.
Of course, not all the cheery comments come from people looking to manipulate you. Some really believe the picture's turning rosy. But some of this is the usual cheerleaders - the manipulators.
You don't want to make decisions about investing as a result of having been manipulated by someone who's looking to make a buck off of you. And the fact is Wall Street makes a lot more money in a bull market than in a bear market.
If you really believe it's a new bull market, there's money to be made. But I don't think it is. And I do think we're watching people really straining to paint a rosy picture.
So when it comes to those "smiley faces," caveat emptor! Let the buyer beware.
It reminds me of something my youngest son pointed out to me a while back. He noticed that all watch and clock ads show the time as 10:10. Why?
Look at a clock at 10:10 and what do you see? A smile. Apparently the feeling is that the smile creates a positive reaction to the ad.
It's manipulation, isn't it? But isn't that what a lot, if not all, advertising is about? Manipulating your feelings? They're selling a product and they want you to buy.
The point here: when it comes to Wall Street cheer, watch out.
Of course, not all the cheery comments come from people looking to manipulate you. Some really believe the picture's turning rosy. But some of this is the usual cheerleaders - the manipulators.
You don't want to make decisions about investing as a result of having been manipulated by someone who's looking to make a buck off of you. And the fact is Wall Street makes a lot more money in a bull market than in a bear market.
If you really believe it's a new bull market, there's money to be made. But I don't think it is. And I do think we're watching people really straining to paint a rosy picture.
So when it comes to those "smiley faces," caveat emptor! Let the buyer beware.
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