Taking stock

From where I am sitting at the moment I can see an interesting display. It is the local stock market indicis. High above my fair cities streets, atop one of the larger building in the CBD, the sign reports the market, its’ the direction (up or down) and by how much.

The fate of billions of dollars are announced every minute on the minute while the exchange is exchanging. My personal wealth and fate are tightly bound to this flashing sign. While I don’t own much stock directly I do have a retirement fund (and retirement is very important in my book) and, more importantly, while the economy is bubbling along my job is secure.

The other thing that is on my mind is the instability of this counter over the past week. It reminds me of the October 1987 crash. In the weeks leading up to that event the market fluctuations were huge before the final 50% drop. I know enough about controlling non-linear systems to recognise one; especially when it is approaching a cluster of local minima. In the ‘87 example the control action eventually ran out of energy and the market found its new equilibrium. Hmm….I think I will start moving my retirement funds into safer waters.

I have a natural predisposition to pessimism so seeing the ticker is not a good thing. It is a constant reminder of how fickle my life is. I have done all I can to sand bag myself from the market but the fact remains it rules my life. Sure I could find a nice secure government job but I don’t think I could exist in a bureaucracy. I like the challenge (and cash) of living a bit higher on the risk reward curve.

I know the market will crash. The only question is when. If I knew that I would buy a pile of futures. Other than that I haven’t been able to come up with a sure fire ‘get rich while every one else is drowning’ option. I guess what I really want is an investment that goes up when the market crashes but with no time to crash penalty. Tall order.

And there is the nub. This thing that is out of my control affects me so much. No matter where I look for a hiding spot this market edifice looms over my head. This is the lot of a working man in the new millennium. The nature of my work puts me closer to the front line than most but even so it affects the fortunes of every one in this country.

I guess I will stick to good old cash investments for the time being and look for bargains when the dust settles. Hmmm, I wonder what the price of gold is doing at the moment……