07 May 2004 News Flash – Interest Rates May Rise
Posted at 16:31h in The Friday BriefMaybe it’s impossible to fully prepare oneself for the prospect of leaving NeverLand. We get comfortable with things as they are and are easily shaken when facing the possibility they may soon change. We have known for months that interest rates couldn’t stay at forty-year lows and that tax breaks and incentives wouldn’t remain the rule. But with all the waling and gnashing of teeth on Wall Street during the past few weeks, we see proof of Benjamin Graham’s observation that the market is a “voting machine” in the short run, driven by the sum of individuals voting their emotions of fear or greed. Only during longer spans of time does it settle into its more dignified analytical reputation as a “weighing machine” of the facts.