Favorite Stock Market Cartoon
“One of the funny things about the stock market is that every time one person buys another sells, and both think they are astute.” –William Feather
There’s an important truth about the stock markets hidden in what Mr. Feather points out. There is perfect equilibrium in the market every day. For every buyer there is a seller and for every seller there is a buyer. This is true for every transaction in all the markets around the world.
It also brought to mind my favorite stock market cartoon that goes all the way back to 1989. Pretty funny stuff that points out the absurdity of how a lot of buying and selling actually goes on…even today.
That’s why it’s nice to have an investment process routed in scientific evidence and not based on someone’s opinion of what might happen.