(That’s financial markets — stocks, bonds, commodities)
First, words of wisdom:
“Any contravention of natural law, any tampering with the natural order of things, must have its consequences, and the only recourse for escaping them is such as entails worse consequences.” – Albert Jay Nock
. . . Which brings us to a front page Wall Street Journal headline from Friday. If the most prominent business newspaper in the world is to be believed, “Saudi Arabia Pumps Up Its Stock Market After Bad News.” With an eye on keeping the shares of Saudi companies buoyant, the Journal reports that “the Saudi government has placed huge buy orders, often in the closing minutes of negative trading days, to boost the market.” Later in the article, authors Justin Scheck, Bradley Hope and Summer Said added that “China and other developing countries have been intervening for years in their stock markets.” Their reporting is a reminder of why readers should cast a skeptical eye on what business reporters aim to convey, and it’s also a cautionary tale about the folly of drawing “correlations.”
“Intervening”. How quaint. And ignorant. Every buyer and seller in a market is intervening. That’s how a market operates: buyers and sellers conducting their affairs.
Check out the so-called “Greenspan Put”. There’s something else that moves markets. Wonder what that can be? Maybe it has something to do with sentiment.