Someone opened Pandora’s Box recently and out flew a multitude of furies. Stock markets around the world have been gripped by fear. Most have nothing to do with stock market valuations, but some do. Let’s analyze these:
- Ebola will turn into a world-wide pandemic and devastate economies everywhere. This is highly unlikely, but still can be serious. More and more resources are being brought to bear on this and should soon be yielding results. We are monitoring this.
- Europe has slowed and may fall into recession. Europe has been an underperforming region for decades. The U. S. economy does not depend upon the performance of Europe’s.
- South Americas’ economies have fallen off a cliff. This has always been a volatile region. Booms and busts are common and have little correlation to the U.S.
- ISIL will attack the U.S. Terrorism is always a possibility. The U.S. cannot freeze-up because of this. If it happens we will simply have to deal with it.
So under careful analysis, these don’t seem nearly so bad. Fear is powerful and there is certainly much of that right now.
Keep them in check and stay steady, my friends.
the Lonely Bull