That didn’t take long at all, did it?
Last week, I jokingly referred to the notion that the Tax Cuts Crashed Market. It was a tongue-in-cheek reference to the foolish notion of ascribing a single causative factor to the elaborately intricate dance that defines daily market action.
Specifically, I raised the issue of:
"The mechanisms and forces driving Markets are far too complex and
forward looking to credit or blame any single element for any given
day’s trading. Something to remember the next time you hear someone say
Markets did ____ because of ____."
I guess I shouldn’t have been surprised when the talking point went out and Fox News blamed the market drop on the NSA leak! Neil Cavuto — a very nice guy who I believe knows better — implied as much. And on Bulls & Bulls, that was the lead story — the show’s opening graphic asked "Nat’l Security Leaks Putting the Brakes On a New All Time High?"
That’s astonishing in so many ways, I cannot begin to list them all. (At some point in the future, I will explain why this is a homeostatic, self-correcting mechanism).
There are a few things I’ve always liked about B&B: They are one of the few shows that demonstrate technical analysis and use charts to great advantage; They also are better than most when it comes to owning up to stock picks, both good and bad. But this absurd denial of how markets work — and the obvious politicization involved — is beyond me.
Kudos to Bob Olstein and Pat Dorsey for being part of the reality based universe and correctly pointing out how irrelevant this was to the ongoing correction . . .