The Beef?

As I write I am looking out over an idyllic Vermont scene, a 20 acre pond in mist, surrounded by a forest dressed in that preternatural early spring green.

And I am thinking about the financial markets falling out of bed today after an amazing run these past few months.

I have never understood investing although my life depends on those who do. Or at least who understand it better than I. Or at least are willing to put money on the line.

Here's what I cannot fathom. A president whose apporval rating has fallen into the range of Nixon's during Watergate. A trade deficit with the rest of the world that sets a new record every day. A dollar that has lost a signfican portion of its value against all of the world's currencies (with the possible exception of the Zimbabwe dollar). A national debt that, last I heard, would require each American family to pony up somewhere around $30,000 to pay off. A reckless foreign policy that has now even separated us from our former lackey, Great Britain, who yesterday told us, as the stern uncle Britain sort of is to us, to close our disgraceful prison in Guantanamo.

Now in the face of all that the stock market has been hitting near historic highs for the past several weeks.

Go figure.

Historically, so I am told, the stock market forecasts events six months in advance. What is this market forecasting that makes it see good news for us six months from now?

I do believe all this is good news for the human family, down the road. Nothing is forever and empires crumble. But in the short run it is likely to be tough for everyone as matters reassemble.

Or maybe the markets know something?