Pretty awesome and oh so accurate. What most people don’t understand about the stock market is that the people make and break it. If everyone decides to sell, the stock market crashes. If everyone decides to buy, it goes up. Very nice example of this.
This is just a hoot! There is not always a lot of rational thinking at the foundation of how things work in our country. I try not to think about that a lot–feels like a house of cards if we keep pretending the free market concept does not always create the best economy. Look at our small hand-made businesses that serve children: being forced to submit their wares for expensive testing because Mattel’s suppliers cheated is insane. Allowing Mattel to do their own in-house testing is absolutely insane!
Stock trading is not an exact science and is practiced “at least partially” based on traders instinct and educated guess, therefore stock market will always be prone to overreactions and human influences such as profit maximizing “GREED” and stocks value manipulation . The bottom line is we should not be surprise when we get hit with such market disasters, after all who is really dictating the market moves?, big banks and stocks manipulators and of course they have the best intentions for us and also they know “How Stock market Works”.
This would be true if all investors are in close contact with each other. Most times this is not the case. The market reflects the sum of all sentiments- rational and irrational, studied and fancied, pertinent and irrelevant.
Xamuel – that was a fairy tale told to grown up kids in college
tom – actually, the cartoon is closer to the truth…not that your statement is wrong. Just that there is far more irrational, fancied and irrelevant input into the market than rational, studied or pertinent…
But if you purchase a company based on its intrinsic value (i.e. NPV of estimated free cash flow for a foreseeable period), you should be golden. Granted, you don’t take part in overvalued stock run-ups and don’t make the fantastic gains so long as the next fool will go in.
I think nearly every financial crisis was caused by that.
Someone tells the media, or the media comes up with it on their own, saying “There could be a financial crisis coming.”. Then people sell everything they have in a panic.
And the media then says, “There is a financial crisis! Stock prices are falling!”. And then those who didn’t panic and sell everything they had, do so!
Then the whole world goes to hell because of a rumour. :-\
This cartoon is a fairly accurate description of how some of the market sometimes works. However, this isn’t what causes the stock market to crash… For one thing, every sale of stock requires a seller AND a BUYER! People overlook this basic fact all the time. For every person selling, there has to be someone else who’s buying… Sooo obviously we can’t sell ourselves into a stock market crash. The greater principle to understand here is that consumption doesn’t produce wealth. Period! Anyway if you want to know the real answers to our problems read up on Austrian School economics.
Pretty awesome and oh so accurate. What most people don’t understand about the stock market is that the people make and break it. If everyone decides to sell, the stock market crashes. If everyone decides to buy, it goes up. Very nice example of this.
I love this one.
This is just a hoot! There is not always a lot of rational thinking at the foundation of how things work in our country. I try not to think about that a lot–feels like a house of cards if we keep pretending the free market concept does not always create the best economy. Look at our small hand-made businesses that serve children: being forced to submit their wares for expensive testing because Mattel’s suppliers cheated is insane. Allowing Mattel to do their own in-house testing is absolutely insane!
Hey, remember when the stock market was supposed to be about investing in companies with long term profitability…
Funny no wonder they got American economy in so much trouble…lol.
Haha so funny and sad at the same time.
Copyright, the Economist magazine.
SO, what do you say buy or sell….which is it ,make up your mind….lol
Very Nice if feel like that from time to time.
Stock trading is not an exact science and is practiced “at least partially” based on traders instinct and educated guess, therefore stock market will always be prone to overreactions and human influences such as profit maximizing “GREED” and stocks value manipulation . The bottom line is we should not be surprise when we get hit with such market disasters, after all who is really dictating the market moves?, big banks and stocks manipulators and of course they have the best intentions for us and also they know “How Stock market Works”.
Really funny, it isn’t far from the truth either when people panic and offload stock.
This would be true if all investors are in close contact with each other. Most times this is not the case. The market reflects the sum of all sentiments- rational and irrational, studied and fancied, pertinent and irrelevant.
Xamuel – that was a fairy tale told to grown up kids in college
tom – actually, the cartoon is closer to the truth…not that your statement is wrong. Just that there is far more irrational, fancied and irrelevant input into the market than rational, studied or pertinent…
that’s what happened to the Dow the other week. some miss a few letters in the market and now a big drop in it
But if you purchase a company based on its intrinsic value (i.e. NPV of estimated free cash flow for a foreseeable period), you should be golden. Granted, you don’t take part in overvalued stock run-ups and don’t make the fantastic gains so long as the next fool will go in.
Buy low and sell high?
I think nearly every financial crisis was caused by that.
Someone tells the media, or the media comes up with it on their own, saying “There could be a financial crisis coming.”. Then people sell everything they have in a panic.
And the media then says, “There is a financial crisis! Stock prices are falling!”. And then those who didn’t panic and sell everything they had, do so!
Then the whole world goes to hell because of a rumour. :-\
This cartoon is a fairly accurate description of how some of the market sometimes works. However, this isn’t what causes the stock market to crash… For one thing, every sale of stock requires a seller AND a BUYER! People overlook this basic fact all the time. For every person selling, there has to be someone else who’s buying… Sooo obviously we can’t sell ourselves into a stock market crash. The greater principle to understand here is that consumption doesn’t produce wealth. Period! Anyway if you want to know the real answers to our problems read up on Austrian School economics.
Yup, one thing that fuelled the house pricing crash were the rumours of a house pricing crash.
The telephone game form grown men
nice! Yes, i also really like to visit new place,your idea is good.
Nailed it!
Whenever I hear someone say, “the market is rational”, I know I have just heard an idiot speak.
انا عاوز فيفا 2007
The more i read it the more hilarious it becomes.
Hey what theme are you using for your website? Im jealous. Looks wonderful.
Love your site it looks really good.
Everything a stockbrocker needs to know he/she learned in kindergarten including the telephone game.
haha, really hilarious!
made me smile
. Love the stock exchange hahaha