55

The SP Future has declined 55 handles from our June 6 post "Enter Sandman." Yesterday, 100s of thousands of new position calls were bought in the Sep Gyro contract and the Fed did nothing. The market, now more than ever, tells us nothing about the future, even the near future. The amazing constant of the media coverage of the capital markets is the promulgation of the foresight myth. All this activity, technology and money has to tell us something, right?

Wrong. And you can hear the stretched reasoning getting louder this morning. I can say without hesitation that I have no idea what those 55 handles mean to the economy, let alone the world. Instead, I would suggest you read the June 1 edition of Fortune on the rise of private companies. The top private companies involve riding in other people's cars and sleeping on other people's couches. They don't need public capital because they don't produce any goods or own many hard assets. What could the daily sloshing around of public shares possibly tell you about that?

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