(By Jeffery A.Miller) As part of my work I speak with smart people from differing backgrounds:
- Individual investors -- clients and potential clients;
- Business leaders -- colleagues on corporate boards;
- Leading economists and journalists -- both groups well-represented at the recent Kauffman Conference;
- Colleagues in the blogging world.
There is an interesting pattern. Most of them feel more confident about their personal circumstances, but they are worried about everything else. When it comes to the stock market, the fear is palpable.
Even the pros are struggling to get a handle on this market. Readers know that I love Art Cashin. A good friend gave me an autographed copy of his book. I have been reading his daily wisdom since I started in the business in 1987. He really does have the pulse of the NYSE floor. When Art says that the normal yardsticks are not working, we should all pay attention.
If Art and the NYSE traders find the market confusing, the rest of us are in good company!
There are two perspectives -- trading and investing -- with differing time frames. I explained this here, and I encourage everyone to read it as background.
The traders must deal with all of the issues Art Cashin raises. Our Felix model finds it all confusing, and has sent all of our 28 trading sectors to the penalty box. Felix realizes that traders should not press when confidence is low.