Fear In A Chart

The stock market has been on a roll since it's bottom in March 2009.  Most people have forgotten what a bear market feels like. But, if a this chart is any indication, the possibility of experiencing one in the near future is a clear possibility.

The red line is a the ratio of the S&P500 to the VIX volatility index.  Basically, the higher the red line is above the yellow band, the more complacent investors are.  A decline in the red line means investors are more risk averse, or fearful.  What's troubling, is that with the market's most recent new high in September, investors have actually become less complacent (and more fearful or risk-averse).  A decline in complacency tends to bring the market down because investors are willing to take less risk. This can be seen on the chart as the red line has shown a lower high, while the market (blue line) made a higher high.  In other words -- divergence.  With less complacency to fuel the markets higher, it's only a matter of time before it begins to fall, just like in 2007. 

Expanded Vocabulary Usage

From henceforth, under the theory that broadening my vocabulary correlates with an expanded perception of reality, I will work on replacing my "low-IQ" words with "high-IQ" words.  At the same time, I will remain conscious to avoid drifting into the realm of pretension common of many big-word-users.  I can't imagine this being a problem, but maybe after ten years, I might forget.  So, as a general rule, a sense of humor will always subvert pretension.

This month's word to be dropped is "effective".  In it's place I will begin using "efficacious".

Motivations and Agendas

From henceforth, I will concentrate my energy on understanding people from the inside, rather than evaluating them from a superficial skin-deep level. I will attempt to understand people's motivations and agenda, whether good or bad, generous or selfish and respond with goodwill no matter what the case.

Self Concious Non-Conformist

A long time ago I took a personality test which told me I was an INFP. After much pondering and reflection, I've re-diagnosed myself as a SCNC. That is, a non conformist but too self conscious to fully express my nonconformity.

Detached Awareness

From henceforth, I plan to be more conscious of my awareness. When is my mind on autopilot? When am I most perceptive? Hopefully by recognizing my level of detachment or attachment, I can learn to control them more voluntarily. I am thinking that by mentally detaching myself from daily physical abstractions, it will lead to more of a broad understanding of everything. Kind of like seeing the forest through the trees.

Love, Truth and Kindness

"Truth, Love and Kindness". My trinity.

Two Roads

The wanderer was becoming more conscious as he crept ahead in years and began to discern two roads before him...

The first was an interstate highway where mobs of like-minded travelers were swept along in a ceaseless cycle of struggle and survival in order to reach a vague destination purported to lie just around the next bend. He noticed that the road's obstacles helped produced confidently opinionated individuals who seemed to have all the answers but, only to unimportant and trivial questions. They reminded him of automatons as they offered unsolicited stories and advice regarding their experience along the way. But, to him, the stories they told rang hollow. Candy-coated in embellishments and superficiality, he found them void of hope and sustenance.

The second road was unpaved. Narrow sections of unkempt grass and ancient trees casting dark shadows offered little solace for companionship. Nevertheless, he could hear the lonely beauty of this path speak to his heart. He noticed the sporadic flow of individuals appeared weathered and weary on the outside, but had eyes that smiled revealing a quiet wisdom and contentedness. These travelers had stories too, but a disconnect with society destined most of them to take their experience to their graves.  Perhaps a lack of interest in exploring their depth or they were just unready to embrace the truth.