The markets are not robust

Yesterday the US equity markets took a dive. The second largest one-day point drop in history is now being attributed to trader error.

From Merriam-Webster

Main Entry: ro·bust
Pronunciation: \rō-ˈbəst, ˈrō-(ˌ)bəst\
Function: adjective
Etymology: Latin robustus oaken, strong, from robor-, robur oak, strength
Date: 1533

1 a : having or exhibiting strength or vigorous health b : having or showing vigor, strength, or firmness c : strongly formed or constructed : sturdy d : capable of performing without failure under a wide range of conditions

With all the fail-safes in place…for that matter all the potential buyers in place, it happened.

Buy or sell, you’d like a robust market. Do you really think this one fits the definition?

Twisting Dow facts for fun and games this Christmas Eve

The Business Week headline…Stocks end shortened session at new 2009 highs. Alright!

USA Today sayeth…Stocks close for Christmas at highs for the year. Wowza!

BizJournals via MSN Money (and I’ll note that at least they weren’t syndicating the same ol’ same ‘ol from the AP)…Dow closes at one-year high. Still…yeehaw!

Time for a hip-hip-hooray? Go out and buy another widescreen TV before BestBuy closes?

If you were investing in lockstep with the long term horizon preached to you by your financial advisor, you might want to think twice. The Dow Jones Industrial Average closed the day at 10,520.10. On December 24th, 1999 the DJIA closed at 11,405.76. It’s not-so-technically down 885.66, or 7.8%, over the last decade.

Put a sock in it, financial press cheerleaders.

And by the way, Merry Christmas!

Editor’s note: Warren Buffett, along with a pile of hedge fund managers, should still rush out and get new Blue Ray players.