Tuesday, February 1, 2011

Rational Market Participants and the emotional stability of your average five-year-old

First, yesterday's post from Doug Henwood....

Headline from this morning‘s DealBook, the M&A newsletter from the New York Times, edited by Andrew Ross Sorkin:

Will Egypt Crisis Hurt Deal-Making?

Isn’t that the first question that leapt to your mind too?

But Doug follows up to let us know that it now appears all is well:

Those market worries about Egypt yesterday? History! The Financial Times reports that “Investors return to risk as Egypt fears ease.” Today is, as they say, a “risk-on” day.

Why are market participants seen as rational evaluators of anything? My five-year-old is more emotionally stable than your average trader.

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