SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Stock Attack -- A Complete Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mike Learner who wrote (42773)4/4/2002 7:13:47 AM
From: Alfred W. Post  Read Replies (1) of 42787
 
The behavior of the market cannot be judged so simple, because it does not follow mathematical solutions but is to a large degree guided by psychological emotions. In phyiscs if you know exactly all the forces being influencial at a given point you can establish exactly the resultant effect.
Not so in the stock market where you may have identical outside forces and the resulting outcome can be compleatly different. I remember a case in point during the Johnson administration where one tried to reduce the then dangeresly high appetite of the consumers by raising taxes. But the consumer did not react normaly and did not reduce buying anything in site and in this way adding to inflation but complemnted the missing income by dipping into savings or buying on credit. Right now I think the average investor will overreact to any sign of increasing interest rates because he has found out in the not so distant past that falling interest rates are good and raising ones are bad for the stock market even though in this case any increase in interest rates will not have the same effect seeing that the interest level is so low, almost too low and that raising interest rates this time around will be a coincident indicator of an improving economy. After all the replenishment of the low inventories will be necessary and inventories are financed usually tjtough bank loans and an increased demand for credit will make credit more expensive like usual. Only when high interestrates start to get so high as to affect investing decissions negativly will they harm the economy and will hurt also share investments. Fred Post
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News