Today, another day in markets. Stocks down, crude light down. Bonds up, gold down and copper down. Swissy down noticeably.
Markets are the front line. Behind markets are arrayed the people with the money, the people who put the money to work. There are also the producers, the people who actually make the money, as well as the speculators. Behind them are the people who think about the money, pontificate about it, strategize and comment. After those people we probably find you and me, likely as not paying no attention.
Which is more or less as it should be. Big, official markets don’t necessarily connect with we everyday folks every day. Our lives have more important priorities, like keeping our freedom, becoming independent, fighting back government, keeping our families intact and solvent. That kind of thing.
Trouble is that markets do infiltrate our lives. Low (or negative) interest rates stop us wanting to save. Low interest rates make life much more difficult for insurance and life companies. (That is important because these folks assume a lot of risk for us. Risk that we cannot individually accept.) And while low oil prices might at first blush look to be a good thing, this is a business with a very, very long tail, meaning that today’s bonanza might not look such a bargain in a few years.
And a few years roll around way quicker than we think.
Then of course we have central banks and federal governments. They know zilch about, but do nothing but interfere with markets and their participants, your life and all that surrounds it, and even how industries (like insurance) work.
Yep. Another day.