Investors: Forget the Market Theories; Watch These Two Sectors to Determine Broader Strength
Considering semiconductors are in almost everything consumers buy, and all consumables have to be transported, these sectors typically lead economic expansion.
Here we are, the last week of the third quarter with most asking where this year has gone. Time, a precious commodity with finite resource; imagine if this traded on the futures (no pun intended) exchange? When I was younger I can remember always being told, "Wait till you get older Kevin, time goes by faster the older you get." Of course I never believed it until now as I find myself saying the same thing to my 13-year-old son. Nevertheless, this week should be rather exciting given the idiosyncratic and bifurcated nature of this market.
Since the August 2011 20% sell-off these two terms have been tossed around and employed quite often. In all honesty, I looked up the definitions a while back to validate their proper use by market pundits and trade rags. Webster defines idiosyncratic as a behavioral characteristic relating to a temperamental peculiarity of a particular group (paraphrased). On the other hand, bifurcated is defined as a dynamic system which develops from orderly to chaotic by exponentially increasing its possible outcomes. Idiosyncratic. Yeah, that works and fits like a glove. Yet bifurcated doesn't really seem to fit as the number of market outcomes is static – up, down, and flat. In reality, it is the number of influence on those outcomes which is increasing exponentially. Some would call this splitting hairs, but who am I to say. Although interesting, does it really matter?
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