Are you currently shaking your head wondering what is going on in the financial markets?
Here is a small story (from Africa) that illustrates it nicely. Once upon a time, in a village, a man appeared and announced to the villagers that he would buy monkeys for $10 each. The villagers, seeing that there were many monkeys around, went out into the forest and started catching them. The man bought thousands of monkeys at $10 and, as supply started to diminish, the villagers stopped their effort. The man then further announced that he would now buy at $20 for a monkey. This renewed the efforts of the villagers and they started catching monkeys again. Soon the supply diminished even further and people started going back to their farms. The man increased the price to $25 per monkey, and the supply of monkeys became so small that it was an effort to even find a monkey, let alone catch it! The man now announced that he would buy monkeys at $50! However, since he had to go back to the city on some business, his assistant would now buy on behalf of him. In the absence of the man, the assistant told the villagers: "Look at all these monkeys in the big cage that the man has collected. I will sell them to you at $35 and, when the man returns from the city, you can then sell them to him for $50 each." The villagers rounded up all their earnings, dipped into their savings, paid the assistant, and bought all the monkeys at $35 each. They never saw the man, nor his assistant, again . only monkeys everywhere! Now you have a better understanding of how the stock market works. Jeanette Fischer, Western Cape, South Africa. To unsubscribe send email to [EMAIL PROTECTED] containing the line: unsubscribe lace-chat [EMAIL PROTECTED] For help, write to [EMAIL PROTECTED]
