Most investors believe that markets behave cyclically, like an ocean tide that ebbs and flows. Bull markets give way to bear markets; booms turn into busts; low interest rates yield to high interest rates. And it’s true, markets are cyclical…but not like ocean tides.
Financial markets are cyclical…like an Ouroboros – the mythological snake that devours its own tail. Economic trends are forever in the process of devouring parts of the financial markets. Recessions consume stocks; recoveries consume bonds.
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US Employment Figures Continue to Improve
Good day. This will take care of my call from the bullpen for now, so Chris will have the ball for the next couple of weeks until Chuck returns at the end of the month. The summertime heat finally loosened its grip on St. Louis yesterday, and the dollar strength, which had a tight hold in the markets earlier in the week, saw some pullback. We didn’t see much action in the overnight markets Thursday morning, so everything was fairly flat when I sat down at my desk.
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