This tweet from Jim Cramer caught my attention this morning.:
Is it me or has http://t.co/2U0CAxmyIb just become the house of gloom. Every article negative spin today. Amazing..
— Jim Cramer (@jimcramer) August 19, 2015
If I was compelled to retort, I would reiterate what I discussed yesterday in this space (Warning Bells Scream in Silence). The S&P 500’s lack of volatility is masking a lot of really bad news and bad price action in risk assets the world over. I get it that you have to be invested somewhere, and large U.S. stocks, the U.S. dollar and U.S. Treasuries seem like a pretty decent place to hide out on a relative basis, but let’s not be fooled about what’s really going on here. As for the WSJ, let me quote one of my favorite movies of the 1990s, Jerry Maguire:
“We work in a cynical world… and work in a business of tough competitors.”
The WSJ is doing what they are supposed to do. They’re not carrying (maybe just for today) the water for the financial powers that be in a business of… tough competitors. And to be fair about the financial media in general, the covers of the FT.com, NYT Business, CNBC.com, Bloomberg.com or TickerDistrict.com don’t look too different this morning. But in this day and age where most of us have curated news feeds on Twitter, down to the author, we see what we want to see. Not necessarily what the editors of a large newspaper want us to see.
Regular readers know that I too can be cynical at times in my part-time gig as a financial pundit. But that’s for one simple reason, there are enough perma-bulls already out there with very little new or original evidence for their unwavering beliefs. And they will remain that way through any sort of correction or crash.
I know risk assets generally go up over time. But I nor the guy watch on tv, or read on the web is your financial adviser and why shouldn’t you take a few minutes every day to challenge the conventional market “wisdom”? And if you have noticed this is almost exactly how I finished off yesterday’s opening salvo, then you should see a little bit of a pattern.