Manley on the Street

“Too much of a good thing can be wonderful.” —Mae West

Late last week, the European Central Bank (ECB) surprised investors with the announcement of a multifaceted economic stimulus plan designed to aggressively combat economic torpor on the continent. Then the American stock market surprised everyone. In the morning, it surprised the bears by rising sharply in response to the news. Then it surprised the bulls by falling sharply in response to the same news. Then it surprised them both by closing essentially unchanged. Everyone got to be right; everyone got to be wrong.