Friday, January 27, 2006

Learn to Market "Market"

Tonight, Larry Kudlow ran an online poll for his show asking, "Which is the more reliable economic indicator? Markets or GDP?" The episode concluded with the results; 54/46, favoring of markets.

Larry seemed quite pleased with this result, but I'm just confused. Market for what? Everything? That's just a tautology. Gold? Too ambiguous. Copper? Aluminum? Sodium nitrate? Some combination? Is it a reference to the DOW or Nasdaq?

He's right to look down on GDP, and there are alternatives (copper is my favorite check, at least for short term changes), but don't load the question with the nice-sounding--but ultimately meaningless--description, "market."

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