Sunday, April 30, 2017
Miles from the Mainstream
D. R. ZUKERMAN, proprietor
LPR Stock Index - 2005

DISCLAIMER -- This stock index is not a recommendation in any manner with respect to the stocks that comprise this
index. Indeed, neither Lonely Pamphleteer Review nor its proprietor make any recommendation with respect to any stock, wherever listed. The proprietor is, however, fascinated, how the experts seem, each day, to find an over-arching reason for stock performance that does not necessarily relate to developments at any given company although, apparently, some developments at a given company are cited in explanation of the performance of the market in general. The LPR stock index simply tracks the daily
performance of four stocks held by the proprietor and is calculated by adding the daily changes in these stocks. If, for example, each of the stocks went up
ten cents, the index for the day would be plus 40. If two stocks went up ten cents and two declined by ten cents the index for that day would be zero.


JANUARY 2, 2005 --

The LPRSI ended the year Plus 542.

GE closed 2004 AYEP 552 -- 36.50

Motorola ended 2004 AYEP 320 -- 17.20

Time Warner completed 2004 AYEP 146 -- 19.45

How to account for Texas Instruments, which brought the LPRSI down by a whopping BYEP 476, closing 2004 at
24.62?

Housing starts, consumer confidence, oil
prices, interest rates, Amazon.com, job growth, or any of the dozens more reasons "analysts" give for stock performance -- apart from company reports?

 
Close
1/31/03
Close
1/31/04
GE
30.98
36.50
Motorola
14.00
17.20
Time Warner
17.99
19.45
Texas Instruments
29.38
24.62
 
Dow Jones
10,453.91
10,783.01

The LPRSI, having been based on 2003 year-end prices, now closes with the departure of 2004, and with LPR wondering if the year end prices of 2004 will be springboard to go higher, or platform to go down.

Psychological Economy

A concluding thought -- if stock performance is as much a function of all the reasons analysts can come up with -- other than company performance -- perhaps the term political economy might be replaced with psychological economy -- along with reappraisal of the description of
the decade of the 1930's as "The Great Depression."

AYEP- Above Year Ending Price
BYEP- Below Year Ending Price