"Economics is not my vocation, but my avocation. I love the economy. I watch the economy like I watch the Broncos. I don't use that information for making investment decisions..."
This is a paraphrase from Dr. Tom Howard, one of our equity investment analysts, as he spoke to a full house at our lunch and learn event last week. How prescient that the market would coincidentally take the unwanted turn that the Broncos took.
Seahawks' Sherman says they figured out Peyton Manning's hand signals; read more here.
Wouldn't it be nice if we could figure out Mr. Market's hand signals? As Dr. Howard says, "Don't fool yourself into thinking you can figure out what's going on. The economy is large beyond comprehension. We cannot blame Janet Yellen or Ben Bernanke, this President or the one before." And this comes from a Professor Emeritus at the Reiman School of Finance, Daniels College of Business, University of Denver.
Blaming Bernanke, as tempting as it may be, would be like watching Peyton throw an interception, running up to the referee and interviewing him on how the action is going, then blaming the referee for the play. Ideally, the market provides a level playing field for all of us. Let's not confuse the players with the referees.