Apr

23

 My squash coach at school, the great Jack Barnaby liked to tell stories about how he beat this and that player in the semis of this or that tournament in the 1920s. We liked to characterize it as "the older we get, the better we were" and had some tee shirts made on that vein. The current market brings back those days. (the worse we are, the higher we go). One can't resist shorting it on occasion to one's cost. One is also reminded of the historical fact I've seen which is that french stocks went up during the French Revolution.

Kevin Elian writes: 

Great point. And the French market being up was probably the result of inflation:

On March 17, 1790, the revolutionary National Assembly voted to issue a new paper currency called the assignat, and in April, 400 million were put into circulation. Short of funds, the government issued another 800 million at the end of the summer. By late 1791, 1.5 billion assignats were circulating and purchasing power had decreased 14 percent. In August 1793 the number of assignats had increased to almost 4.1 billion, its value having depreciated 60 percent. In November 1795 the assignats numbered 19.7 billion, and by then its purchasing power had decreased 99 percent since first issued. In five years the money of revolutionary France had become worth less than the paper it was printed on.


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2 Comments so far

  1. Craig Bowles on April 24, 2013 1:17 pm

    Short-term trader sentiment is interesting. Bullishness for gold has been strong on each drop and bearishness for stocks steps up on each new high. The only thing that has flip-flopped is bonds. Trader sentiment was 100% bullish heading into the previous AAPL earnings and PMI data but this time sentiment for bonds have 100% bearish.

    http://www.investing.com/rates-bonds/us-10-yr-t-note

  2. Stripey on April 26, 2013 11:23 am

    ‘(the worse we are, the higher we go). One can’t resist shorting it on occasion to one’s cost.’…absolutely spot on!!

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