Thursday, June 4, 2009

The Power of Perceptions

Spring is in the air, even in the northern reaches of New England where I call home. Summer is almost here. The stock market is up, a lot. GM has been “fixed,” Fiat is buying Chrysler, buyers are lining up to bid on foreclosed homes in Phoenix, and even newspapers are less dead than they were a few months ago. It seems rather easy, doesn’t it?

Call it the power of perceptions. Sentiment has turned from utter disaster to great hope, and I like it. My tennis game is getting better, my weight is terrific, my cooking better than ever, and I like it. If we feel something is, then it is. The power of perceptions. If reality intrudes on this pretty picture, and it turns out that GM is not fixed, that nobody is reading newspapers, and that my tennis game isn’t all the good after all, we’re in deep trouble. So I prefer to believe that all is good with the world, we are getting better, and summer is just around the corner. Right?

1 comment:

  1. I couldn't agree with you more. The Rational Expectations Theory is quite valid in light of how the nation's mood drives stocks and the economy.