To save Peter Pan, Tinker Bell drank the poison. As the light grew fainter and her life about to end Peter Pan asked the boys and the girls of the world to believe in fairies “Where ever you are if you believe clap and she will hear you. Clap. Don’t let Tink die. Clap. Clap.”
Did you clap?
Today we are asked to clap again and believe the fantasy that is the stock market. Historically the market has been a reflection of the strength and weaknesses of an economy and the underlying wherewithal of its people. But it seems that the worse things get, the louder the pundits cheer and clap; and the higher the markets go with no correlation to reality. Believing makes the light grow stronger.
The GDP is not to our liking: simply take some numbers, healthcare, from one quarter and bolster another. Clap.
Not comfortable with the unemployment numbers: simply discount millions of non-workers as retired. Clap Clap.
Manufacturing continuing to disintegrate: simply give cars away like samples at a Sam’s Club. Clap Clap Clap.
The President thwarted by the Supreme Court: simply acknowledge some respect for their decision but end run Congress anyway with immigration reform. Clap Clap Clap Clap.
For a brief moment J. M. Barrie took us to a world of make believe, a world of pirates and Indians, lost boys and fairies. We discovered that a part of us should always keep the little boy or little girl inside of us. We learned that if we truly believe and just a little fairy dust we could fly straight on to Neverland.
The fairy dust continues to be sprinkled on the stock market, however like Wendy, John and Michael who eventually grew up, in spite of fairy dust, so too will the stock market. Reality and fantasy will meet in a struggle that will end with the light being extinguished.
Till then ignore reality and keep clapping, it just may keep the markets alive for a little while longer. After all it worked for Tink.
PS I did clap very loudly.
Along with his 40-years of dedication in the financial services industry, Bill is the President and CEO of GPSforLife, has recently authored a highly successful book entitled 44th: A Presidential Conspiracy, publishes his dynamic monthly financial newsletter MacroProfit, and faithfully continues his third decade on the radio with It’s All About Money, which can be heard weekdays on Money Radio in Phoenix and in podcast form on his website (and on smartphone apps) published at billtatro.com weekdays at 5pm Eastern. Bill can be reached via email at firstname.lastname@example.org and on Twitter @tatroshow.