I’m not exactly certain if the stock market swings like a knockwurst pendulum, having never actually seen a knockwurst pendulum up close and personal.
But I do know that the markets do get a little tipsy with the intoxication of the moment. Or, conversely, quickly reach the snapping point of depression. Even teen-agers don’t overreact so dramatically.
For instance, stocks spiked dramatically (after all, Wall Street isn’t that far from Broadway) in the U.S. and Europe today after French and German leaders promised to strengthen European banks.
The Dow Jones industrial average closed up 330.06 points, or 3%, settling at 11,433.20. Even bigger leaps were taken by the Standard & Poor’s 500 index, up 3.4% to 1,194.89, and the Nasdaq composite index, up 3.5% to 2,566.05. I immediately went out and bought another yacht to sail on Blue Marsh.
Of course, pardon my cynical self, but I don’t believe that the European financial crisis is that easily solved. So don’t look for it to be up, up and away indefinitely for the markets. So I had better not get too fond of my new yacht.