Spring Musings

Spring has sprung; there is no more of a sparking season, the telltale signs abound. Leaves blossoming, birds humming and even our national sports pastime baseball, is in high gear. Spirits uplifted; nary a soul to dampen our enthusiasm. Even those with bouts of hay fever pop an Allegra and join the seasonal orgy in a drowsy bliss. Wall Street has embraced this shift in ideology with fervor, brushing away its brief interlude with old man winter blues and its grizzly bear, when it shed 700 points in a matter of days this February.

The market has displayed its resilience and bounded higher to the tune of 1300 points from its icy nadir, and that, even for the most ardent bull or allergy ridden sufferer is nothing to sneeze at. The sub prime mortgage fears and yen carry trade rhetoric that were seemingly causing a blizzard of selling are now as harmless as a few fair weather clouds dotting the sky on a blissful day. Unleaded gas prices flirting with all time highs can hardly place our spirits in the tank, while a reeling dollar will not allow us to buck the trend. In fact one can argue, that with subsequent inflationary pressures and diminishing returns, the US markets are hardly appreciating. Undoubtedly its performance actually pales in comparison to its foreign counterparts. The Hang Sang in China, the stellar index, up a whopping 50 percent in a few short months. Its economy rip roaring as the government tries in futility to stem the bubble by raising rates incrementally. Lest we mention the continuing unabated decline in the housing market and no imminent federal reserve easing, as strength in base and precious metals portends. In addition, corporate earnings that merely beat significantly downsized estimates… But, who are we to raise ire and rain on the parade? It seems hope springs eternal and with a return of the ‘cash is trash’ mentality, along with leveraged buyout mania the bulls have managed to wrestle complete control.

For the lone voice of the stifled bear, who has gotten trampled amidst spring fever and seeks recluse, we offer this decree as a vestige of hope: Perhaps, much like the allergy laden spring enthusiast we have ignored the symptoms and doused ourselves happily with Allegra to minimize our discomfort. It is mere patchwork that has lent credibility to the bull. As the delirium wears away, we will return to reality, amidst puffy eyes and handkerchiefs.

There may be some substance to this edict or it may just as well be a reflection of our empathy for the defeated, amidst our celebratory glee. Regardless, one shall rest assured that the barking you hear in the distance is undoubtedly a prelude to the dog days of summer!!!