Charts

The Two Metrics of Wall Street

June 6, 2012 - 11:35am

Fear and Greed

As we enter the summer of 2012, the Market is behaving like a weasel on speed. One day it twitches way up the tree, with vast gains for inexplicable reasons. The next day, zoom! Down it goes, hundreds and hundreds of points. Why? Something about Greece. Something about employment numbers. Then it's Wednesday and Bang! Up it goes 200 points. Why? Did Greece go away? Are more jobs being created? None of the above. It's all about whether the powerful, throbbing plasma of greed has invaded its host and overpowered the ganglion of fear that encrusts the heart of the Street. Today we're up. Tomorrow, who knows? But a message to everybody who makes their living by "diving deep" and "parsing the numbers" to predict or profit from the rational moves of the economic system: Please shut up. This is Mr. Toad's Wild Ride we're on, not Newton's Mechanics. This chart explains the only two metrics that really matter to the investment community. 

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