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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (75302)	2/6/2000 10:26:00 PM
From: Simba	Respond to of 132070

Wayne: I think a major difference between race horse and stocks is the feedback effect on stocks. If enough people bet long on a stock the stock performs better due to the momo effect at least for the short-term investors, but the horse and jockey do what they do, except that the jockey may be somewhat encouraged by the odds facoring him. Also the jockeys of the stocks (the CEO and upper managment) can capitalize on the temporary overvaluations personally and for the company and shareholders by buying up real companies, example AOL Time Warner. Ignoring the herd effect can be perilous reagardless of the fundamentals in the short term as opposed to horse races. Simba