Is anyone else totally confused by what is happening in the stock markets?
On Thursday morning, the latest inflation numbers were released, indicating that inflation has yet to be tamed, much less slowed down. The futures, up to the time of the data release, were up. However, after the negative news, the stock market plunged. This follows with economic theory.
However, not long after the dive, the markets changed course and the Dow went from being down 700 points to being up 800, a breathtaking change of 1,500 points in the blink of an eye.
How did this happen?
There was no change in the negative economic news, nor any indication that the Federal Reserve had changed course. My conclusion: Heaven only knows.
I thought I had some insight into how financial markets perform, mainly because I have learned to be my own contrarian–if I believe the market will go up, it usually goes down.
If the stock market, which gives instantaneous feedback, does not follow logic, how can business owners fetter out what to do, in terms of allocating capital and resources, the outcomes of which will not be known for, perhaps, years down the road?
Unlike the stock market, millions of dollars are being invested in the produce industry against a backdrop of bad news, hoping that down the road financial circumstances will be more sanguine.
If one cannot make money in the short-term, with feedback on a second-by-second basis, how can one feel comfortable making decisions that will not be known for years hence?
Things we expect to happen, don’t.
However, knowing that we are part of an industry that I believe will not fail or fall by the wayside, gives us hope for the future.
Think about your beliefs and instincts. Sometimes, the gut, and the belief that the produce industry will be around well past our lives, are the best determinants of an, admittedly, uncertain future.
