We Invest, Therefore We Are

If you need any more evidence that the stock market has become the most important barometer and determinant of public psychology -- with the Fed as Keeper of the Flame of National Purpose -- see this Newsweek cover. I wonder how well it's selling anywhere in this country that's west of Grand Central Station. If the Dow was at 9000 instead of 11000, and most of the current economic and sentiment measures were the same, would that cover have run?

A classic mistake that investors make during the tail end of recessions is staying too negative too long. But one of the lessons of the most recent boom/bust is the importance of what one sees as opposed to what one reads (especially in advertiser-driven mainstream magazines). I snapped this photo two weeks ago in one of Manhattan's prime retail areas: Columbus Avenue/the 80's. If you can't read the sign, it says, "I need your help! Sale! Please come in. Help us make it thru these times." There were several empty storefronts within a few blocks each way. And remember, this is Bailout Central:


Now look at this magazine cover again.

Then again, a couple of weeks ago the Dow was a few hundred points lower. Maybe that sign is long gone.