Sunday, January 17, 2010
Rise : Fall, Fall : Rise
Hi friends, in last two years (i.e-2008 jan to 2010 jan) we have seen some extraordinary moves not just in asset markets but also the way humans behave during boom and burst. In Jan 2008 the mood was of extreme optimism, future full of bright prospects, uninterrupted prosperity so on and so forth. An year later (i.e just 365 days later) the pendulum was on the extreme opposite side with extreme pessimism all around. Again a year later (i.e Jan 2010) we the mood swing back for better to near extreme optimism. Is it just a mirage extrapolated media and few companies or something truly has changed in such a rapid pace? Or Is it just a pingpong ball bouncing back due to hard landing?
Subscribe to:
Post Comments (Atom)
hey suman bro...
ReplyDeletethis post of yours is like the bottomline of all that the field of financial theory has to prophesize. human behavior is the essence of all that is taught in every institution across the globe. as in finance where, after all the spreadsheet modelling and all those complex gibberish valuations, the price that a corporation pays to acquire another is more often than not a reflection of shareholder's sentiment and their emotions...similarly, in the more grey world of marketing, even the best of campaigns fail to yield measurable results: bottomline - they may have failed to appeal to the emotions of their target audience....
It's simple and straight. The sheep(retail investors) follow the shepherd(Institutions). The shepherd was not happy in 2009 as some of his neighbors were falling and there was nothing to cling to. Now that he has the pillar (TARP), he's bouncing and the sheep are happy again.
ReplyDeleteGreat way to put it dude, but the irony is that sheep and shepherd are not on the same level playing ground (level of intelligence) whereas we are in, still we don't use the brains we have
ReplyDelete