How the Stock Market works - an explanation

Discussion in 'OT (OFF Topic) Forums' started by verytalldave, Oct 10, 2008.

  1. verytalldave

    verytalldave Hardcore MB Enthusiast

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    It was autumn, and the Apache Indians in their reservation asked their new Chief if the winter was going to be cold or mild.
    Since he was an Indian chief in a modern society, he couldn't honestly tell what the weather was going to be.
    Nevertheless, to be on the safe side, he replied to his Tribe that the winter was indeed going to be cold and that the members of the village should collect wood to be prepared. But also being a practical leader, after several days he got an idea.
    He went to the phone booth, called the National Weather Service and asked, "Is the coming winter going to be cold?" "It looks like this winter is going to be quite cold indeed," the meteorologist at the weather service responded.
    So the Chief went back to his people and told them to collect even more Wood.
    A week later, he called the National Weather Service again. "Is it Going to be a very cold winter?" "Yes," the man at National Weather Service again replied, "it's definitely going to be a very cold winter."
    The Chief again went back to his people and ordered them to collect every scrap of wood they could find.
    Two weeks later, he called the National Weather Service again. "Are you absolutely sure that the winter is going to be very cold?" "Absolutely," the man replied. "It's going to be one of the coldest winters ever."
    "How can you be so sure?" the Chief asked.
    The weatherman replied, "Because we have observed the Apache Indians on their reservation are collecting wood like crazy and that ALWAYS indicates a forthcoming bad winter."
    And that, my friends, is how stock markets works!!!
     
  2. Godot

    Godot Hardcore MB Enthusiast

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  3. Godot

    Godot Hardcore MB Enthusiast

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  4. Smiley

    Smiley Hardcore MB Enthusiast

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    I heard that it is even more simple than that; greed drives it up and fear drives it down.
     
  5. Godot

    Godot Hardcore MB Enthusiast

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  6. Godot

    Godot Hardcore MB Enthusiast

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  7. Rory

    Rory MB Club Veteran

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    This is really how it works:

    [​IMG]
     
  8. Defiant

    Defiant Hardcore MB Enthusiast

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    Do these stock market types only buy groceries when the price doubles, and pass up all the weekly sales?

    I guess I'm just too simple.
     

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