A Fall Classic
Last night’s Game Seven of the World Series was fantastic. From the lead-off homerun to the game-ending groundball, the game was packed with tension and excitement as the Chicago Cubs emerged victorious. This seventh game will undoubtedly be remembered as one of the best.
For those of you that weren’t watching, Cleveland tied the game in the bottom of the eighth inning. A storm came through after the ninth inning ended in a tie, causing a rain delay before the start of extra innings. After the rain, Chicago quickly put two runs on the scoreboard and threatened more. But the Indians fought valiantly. They squelched a nascent rally, and came back in the bottom of the tenth getting one run and then another baserunner before committing the final out. A true nail-biter. Congratulations Cubs fans.
Speaking of fall, the markets fell for a seventh day in a row on Wednesday. U.S. markets have not experienced a seven day sell off in over five years. Fear and uncertainty have reappeared, as investors worry about interest rates, oil prices and the election. The recent swoon has nearly erased the progress of the first nine months of this year. Much like last night’s game, the momentum seems to be shifting. As momentum in the market shifts, volatility rises and we see individual companies moving up or down faster and farther than normal. This week numerous companies reported earnings above expectations and their stocks jumped sharply higher. Conversely, earnings disappointments were treated harshly. Pleasure and pain, greed and fear, reward and punishment are all making their presence felt.
There is no single explanation for this shift in market behavior. It would make life easier if there were! Many parts make up the puzzle that we call “the market”, just like many players make up a baseball team. And perhaps that was one of the best aspects of the 2016 World Series – both the Indians and the Cubs played “team ball”. Each team’s victories were the result of combined efforts. Yes, there was an MVP (Ben Zobrist – he had the game winning hit and batted .357% for the Series), but it was the collective effort of the Cubs managed by Lafayette College grad Joe Madden that resulted in the first Cubs championship since 1908. Wow!
Ralph McDevitt
