The Fear

The markets, and thus the individuals and institutions that wallow in them, are all about "the fear." We are entering the bubble phase in the bull market in fear. The VIX somehow earned the label "Fear Index" even though its prediction record is zilch. Gold has a large and cantankerous following but its movement is tied closer to inflationary fears than actualities. The latest craze is coming out in favor of silver, wouldn't want to look like a gold standard nut now would we?

On the political front the Fear has been dialed up to levels only Nigel Tufnell's amps can handle. The Republicans want to take away your entitlements and have declared War on Women. The Democrats are turning us into socialists. We are heading to a cliff, I've heard. QE is dropping its numeric because of "end date" fears.

Europe is disintegrating and that's got to give you the willies. The Chinese economy is sputtering. Honey, have you seen the keys to the Panic Room? Any down day in the market is analyzed in terms of some blooming meltdown. Every day in the green is an unholy CB manipulation and call for the Four Horseman to saddle up. The Fear has gone global. There are no more "slow news" days because services now routinely make headlines up when the fear ebbs a bit.

Do yourself a favor: Calm down. - Kevin Ferry

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