Wednesday, December 2, 2009

This is how stock market works-(a small example)


A cold winter!

It was autumn, and the Red Indians asked their
New Chief if the winter was going to be cold or mild.
Since he was a Red Indian chief in a modern
society, he couldn't 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 weather man 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, 'The Red
Indians are collecting wood like Crazy..'

This is how stock markets work !!!


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