Comstock Partners, Inc.November 09, 2001
The Media Paints a Different Picture
Your article of 11/8/01 (The Impediments to Monetary and Fiscal Policy) was the most concise summary of the current market that I have read. Perhaps if the media were interested in providing the same rationale to us, investors could have been spared some of the pain of the last year and might have a better idea as to what the future may hold. Of course, TV and print journalists(?) don't have a vested interest in a market that returns 6% to 8% year over year. Not enough excitement. Not enough sponsers. On a further note, I cannot help being dismayed by the low returns of money markets, bonds and CDs. A lot of people in this country who were prudent enough to put their savings in more stable investments are being punished in the Fed"s panic to slash rates. After all, they're investors, not speculators who gambled and lost in an orgy of greed. The market seems to be doing a classic psych job on the Fed. The talk after each half point cut in rates forcasts the next cut to be a more modest quarter point. By the time the meeting rolls around again, the media cheerleaders concoct a scenario whereby the market expects a larger cut. Of course the government can't disappoint the market, can it? Thanks again for your thoughtful commentaries.