Make sure to make the distinction

Things went well in the stock market yesterday, but what does this mean for our economy. Well, the reality is it means nothing. Does it mean that GM’s sales increased yesterday? Does it mean that home builders are going to file a 400% increase in building permits? Does it mean that the airlines are finally profitable again? No, no, and no.

I’m not trying to be a party pooper. I am simply trying to protect you from getting too excited too quickly. The stock market and the economy are not the same thing. Healthy markets don’t have 11% swings in one day. Continue to buckle down and practice your financial fundamentals.

In horror movies there are generally two scary parts. The first is trying to figure out who is going to kill you. Once you figure that out, then all you have to do is get away from the killer. Yesterday, we figured out what the killer looks like. The market was crashing the last two weeks because we didn’t really know what was attacking us. We finally know what our problem is. But we still have to get away from the killer. Unfortunately, I am too much of a wuss to watch horror movies. Therefore, I am just going to keep my clothes for the next 6 months.

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