Sunday, October 26, 2014

Ebola driving or at least correlated with markets

Ebola seems like a lame excuse, frankly, but it’s a widespread one. Assuming that everyone in the market has above-average intelligence we don’t think they’ll trade Ebola headlines any more than they traded Greece election headlines a while back,” CRT strategist David Ader writes.

3 Things to consider...
1) This Chart...

2) It's not about being smart
"It is not a case of choosing those [faces] that, to the best of one's judgment, are really the prettiest, nor even those that average opinion genuinely thinks the prettiest. We have reached the third degree where we devote our intelligences to anticipating what average opinion expects the average opinion to be."

(Keynes, General Theory of Employment Interest and Money, 1936).
3) How do you measure the IQ of a vacuum tube?
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Of course this all makes perfect sense until we get the next Ebola headline...