Slouching in the Valley of Meh

Fresh from hosting the world at the Winter Games of the Olympiad, Russia moved to medal in brinksmanship. The US responded with BTGL rights marches and legalization of pot. The level of the stock market is what matters in America. As my earliest mentor used to say, "In a bull market, EVERYTHING goes right (and the opposite)." Putin seems to understand that the West is a "crisis management" State. When the market is up, the American public's response to international events is tepid.

Weekend market commentators slouched into the Valley of Meh by focusing on 2 themes: 1) Warren Buffett is cute and rich. 2) The economic value of Ukraine is low. Pass the Graphics and cue the Red Carpet ! By Friday, the "intellectual" debate will shift to whether we should count the clump of the population lost to the Neutron Bomb of QE (The markets are fine but the people are toast) in our calculations of employment.

We don't see the mood changing anytime soon. The market may entertain another cluster of down days, but the consequence will be minor. Like November and January, pundits will advise "taking profits." Warren's cheerful folksy bon mots will fade until his next 3 hour self glorification. He buys businesses and lets smart people run them, you trade blinking digits plotted over a 5 minute X-Y axis.

As another successful trader used to say to me when I routinely would slip into these soul searching funks : It is what it is.

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