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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: croesus1111 who wrote (61063)	3/16/2005 3:32:09 AM
From: energyplay	Respond to of 74559

You may find more references under the terms "efficent market" and "perfect information".

To: croesus1111 who wrote (61063)	3/16/2005 3:32:45 AM
From: Seeker of Truth	Read Replies (2) \| Respond to of 74559

Hello King Croesus, That's a beautiful explanation of how and why a minority make money and a majority lose. Now how do we judge whether our views are majority views or minority views? For example,some people, like me, say that world oil production is decreasing and bound to continue decreasing. Others believe that recent high prices are simply part of the price oscillation that oil has always displayed and the exhaustion of reserves is just an everrepeated fable. Which camp is the majority? How do we know? When the majority think that oil production can increase then we can make lots of money, as witness the results of the last 2+ years. But when the majority become convinced that oil has peaked the remaining oil supplying companies may become way overpriced and a flight from oil stocks will become the lonely* but smart way. Perplexed Malcolm * Stolen from Jay Chen