How the American Dream Is Turning Into the American
In many cases a lifetimes
work and struggle, to gain financial freedom, has disappeared over the
say life is but a dream, however, the American dream is fast turning
into the American nightmare. With more than eighty-five million
people invested in the stock market today, people are beginning
to crack under the constant bombardment of negative news.
The financial health of the stock market can be related to the physical
health of each person invested in it. This pertains to more people running
to the doctor for medication, because of their sick portfolios.
A whole concoction of negative sentiment is being sensationalized by a
media who continues to hype every story into a major catastrophe. The
media hype of negative news feeds upon itself and is a mirror image of
March 2000, when the media projected a new paradigm where Dow 20,000 was
viewed on the distant horizon. A collapse in the markets was unthinkable
at that time and anyone who questioned the wisdom of Dow 12,000 was called
a fool and dismissed from sight.
We now have a situation where hedge funds are using all kinds of derivatives
to leverage their positions. When the media machine strikes up its band
of tittle-tattle, fed by rumors or half-truths, the hedge funds jump in
feed from the flesh of innocent investors.
Many of these investors are still holding on to their stocks because they
have been told they are, "Long Term Investors." Many of these
folks have retired and most of their savings are being evaporated away
by the fear mongers with no heart and a ruthless desire to make money
at all costs. A true modern day Sodom and Gomorrah.......... Sod the investor,
who will be gone tomorrah.
Many stocks have been mercilessly beaten into the ground. Many of these
companies are still viable businesses that have good sound prospects for
future growth. As an intravenous drip of unfavorable sentiment is being
injected into newsrooms throughout the media, valuations are being eroded
away from the realms of exorbitant pessimism.
It does not seem to matter if the rumors are true or false, for the most
urgent thing is to be the first with the "scoop." When the scoop
turns out to be poop, it is quickly brushed aside and a new sensationalized
story is hunted down. The rumor mill is turning and the investors stomach
is churning. 400 points down one day......500points up three days later.
An asylum with MEDIA stamped on the front door and the in-mates are being
cruelly punished by reporters and editors insane reporting.
Just how did we become so entrenched in negative sentiment
and how do we regain our positive focus.
It is true there are a handful of corporations who have indulged in illegal
and unethical practices. In fact they did not practices them, they perfected
the villainy and corruption. On top of this we have the fear of a possible
terrorist attack, plus the weakening value of dollar, which adds oil to
the flames of negativity. So there are some "real" concerns.
However the way the facts are reported demands an adjustment, so that
the markets can find their own level without all the hysteria and hype.
There are many positive stand-outs in the recently released, economic
statistics. Considerable more companies are forecasting positive earnings,
than those forecasting poor earnings, but the hearsay's and tittle-tattle
hold court over truths.
In just one instance the media machine reported a news flash that was
months old and it was re-released as new news on a leading bank stock
on Thursday 24 July. The market went from 60 points up, to 240 points
down before the truth was found. It then recovered to finish flat on the
day and many people finished flat on their backs. Who said... Oh what
a tangled web we weave once we set out to deceive? The media is now causing
more damage that any terrorists can inflict.
In the fullness of time, when all the pessimism has dissipated, we will
return to an age reminiscent of the mythological Phoenix, who was a bird
of glorious plumage. It inhabited the Arabian Desert for a span of around
six hundred years. This is a far longer period than any bull market history.
It must have been feeling very depressed by all the negativity on which
it was feeding, for it burnt itself into ashes on a funeral pile of aromatic
twigs, which were ignited by the sun and fanned by its own wings. It can
be likened to the gloomy news on which the media focuses on, then fans
its own flames of bleak and dismal reporting until stocks lie smoldering
in their own ashes.
Miraculously the Phoenix materialized itself from its own ashes, with
revitalized vigor and vitality. It continued to prosper over another cycle
of existence. The character of the phoenix can become the emblem for a
resurrection of a stock market, whose principles and accuracies need to
be supplied by company earnings and morality of actions. This in turn
will inject potency and power to propel the markets higher.
Just as water finds its own level, so should the markets be left to find
their true level of valuation. Distortions and deceits within the media
need to be replaced with authentic reporting that tell the truth, the
whole truth and nothing but the truth, so help them God.
Once the stock market regains the confidence of the public by removing
the mask of greed and fear, we can all go back to living the American
dream. That may not be for many years, so in-between times we need to
find the fortitude and resolve to take us through turbulent times. There
can be no substitute for living a truthful life. To be able to live the
truth necessitates discerning who we really are. If we only have our own
minds knowledge to guide us, we may have hired the wrong accountant to
cook our books. A valid recipe for disaster.
© Michael Levy 2002
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