Confidence Will Get The Job Done

I’m no economist (although I passed those college classes!)-but I do know that there is a “disconnect” between the economic indicators (facts) and the stock market (fear and greed)

While the two are interrelated, as I understand it, market behavior is mostly based on EMOTION connected to beliefs about what the economy will do in the future. In short, it’s a CONFIDENCE GAME.

So, with the government bailout of the credit markets, liquidity should improve –and if consumers and businesses are not restricted from borrowing, the stock market downturn is mostly…..well…in our minds.

It doesn’t help that Jim Cramer the TV windbag is advising people to take the cash they’ll need for the next 3-5 years OUT of the market. When the profit-seekers see real deals, they’ll get back in and hopefully the confidence will increase, fueling a cycle that will feed on itself to jumpstart growth. The reverse is what is happening now, with daily BAD NEWS causing further withdrawals from the Dow Jones.

So….let’s have CONFIDENCE!!!!!

People still need homes, need to eat, travel and spend money. Unemployment is still relatively low—and as long as consumers continue to buy the goods and services they normally would, businesses won’t have to lay off more workers!

I realize that a majority of my recent blogs have been about the economy and the current crisis—but frankly, it’s all that anyone is talking or thinking about. So let’s have FAITH in our ability to produce, to purchase and to thrive!

Regardless of the economic facts that are undeniable, IF it is true that Wall Street is dependant upon our ATTITUDES toward the market, then recovery is within our collective control!

Let’s do it!