An Oath for Financial Markets… - July 6, 2009

With fireworks behind us, and an absence of any real heady economic data this week, statistically, we should have a quiet start to the first full week of the second half. Hopefully!

Probably the only thing we need to keep an eye on is the University of Michigan’s highly regarded report on consumer confidence – which will be out late in the week – and expected to show some improvement.

So while we ponder the facts that:

· we spent nearly $1 billion on fireworks this year,
· bought 2 billion beers on July 4th alone, and
· nearly half of us attended a barbeque…

…maybe this is a good time to reflect on what we really just celebrated – the 233rd birthday of our Declaration of Independence – and what that means for our current economic outlook. The connection is not difficult.

That first American creed talked about, among other things, truths that are self-evident…such as rights to life, liberty, and the pursuit of happiness…as well as other duties and responsibilities.

Some of these truths have come to be reflected in long-standing oaths of professional conduct – like the Hippocratic Oath for doctors who promise to keep the sick from harm and injustice, lawyers’ oaths, and other oaths that vary by state but all point to ethical standards of behavior.

If we are worried about when the stock market will be widely embraced again, and not teeter daily over the latest economic news, we need to look more deeply at the market’s foundation – trust! – which has been badly bruised. Maybe it’s time for a new oath, one also not to engage in harm, injustice, or mischief – but this time for those who manage our money.