edamo,
I agreed most of what you said and appreciated. A little things I want to add on.
First, to have a structural stability of a market, you need all kinds of players. Today's e-gambler tends to forge everything into one. We get the same news and comments at the speed of light.
Second, liquidity is of most important in today's market, that is what A.G. was forced to do last Summer. However, why W. Buffet never splits his stock? even though I think he is a partial genius and partial idiot. I can not see his KO can behave like its past again. What I see is a completely long memory loss. I am sure he is aware of that. I can't say the same to DELL, but it is a process in the making. (I still hold sizable DELL and short puts, folks, don't kill me. :-))
Third, the term long memory is used in academic area. I prefer to call it brown noise. People react in the pink noise fashion, we are taught to believe the market as white noise, and the market is actually brown noise. :-) It is the pink that creates the brown.
Please take my words lightly. I did not know the market before 1992. Although, I am fully aware of GE went to 6 from 300+ in 1929, and I was involved in key commodity trading before, like recent gold trading.
Thanks, again. |
