Makes sense. Thanks Gruss. You paint this interesting picture of the wall street sharks, the upper 1%, the "smart money" guys....circling around, waiting for the "dumb money" to come along so they can clean up. I think this has always made me a bit hesitant about jumping into investing. I know so little about what separates a good investment from a poor one, that i'd be relying almost solely on someone elses opinions. Thats something i'm not too comfy with when it comes to my money.
Maybe im taking the first steps towards gaining the understanding I need to go about it myself.... >> Brian wrote: >> Then please clear up for a novice why the markets, whether they be short >> term or long, would rise on a Bush win? (honest question) >> > > then Gruss wrote: > The markets are based on what people think will happen in the next 4 - > 6 months. This is why they hate uncertainty. When people are > uncertain about what will happen they're less willing to risk money. > That is, the perceived risk is higher with an unknown rather than a > known. Since it is reasonable to assume that there'll be no big > changes if Mr. Bush is elected, the markets wanted Mr. Bush. > >> If its so painfully clear that Bush is heading the country for a fiscal >> disaster, why wouldn't the markets reflect that, as the fiscal >> intelligentia >> act on their fears? >> > > Think of Enron and the tech bubble - did you see markets rise or fall > when many long termers were predicting a bubble burst? They rose! > Yahoo was $400/share. > > As more "dumb-money" investors flood in, "smart-money" investors jump > in so that they can take the dumb money and jump out. Smart money > feels they know when to get out and how to take profits before things > crash. Buy low, sell high. You can only sell high when dumb or slow > money make it high. > ><snip> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Special thanks to the CF Community Suite Silver Sponsor - CFDynamics http://www.cfdynamics.com Message: http://www.houseoffusion.com/lists.cfm/link=i:5:138571 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
