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Jun. 8th, 2006 08:20 amWashington DC residents richest and best educated:
http://news.yahoo.com/s/nm/20060608/ts_nm/economy_washington_dc_2
(this post is just an excuse to break in some new icons)
I'm in the office practically alone the next couple of days, and with very little to do. Oh bliss! After all those months of constant stress, unreasonable timelines, and political BS I'm now getting a reprieve. Too bad it's now when I don't really need the time. This is even an easy week for summer school, with not much reading to do. I may get a head start on the 200 pages I need to cover for next week.
Looking at a media PC to consolidate my entertainment needs. I really really really need a subwoofer. I may also address a car stereo.
Stocks - weird revelation. I ran into an opinion on stocks that just blows my mind and growth/income calculations out of the water. Stocks are not priced based on expected future earnings! Their true value is found in the general stock-buying population's general belief about the sale value of the stock. That's it - it's a fucking popularity contest. All you ever needed to know about the stock market you learned in middle school.
Now, the this popularity may be related to earnings, which can be monitored from forecasts and predictions. It may well be that the company is a solid one with rich benefits for investors. It may also be that people are predicting which sectors of the market will do well given certain economic conditions. Still - while there is a correlation between dividends and stock price, the relationship is weak and getting weaker. Weak - it's only used by experts to gauge how well the stock will sell.
Getting weaker? The stock market boom leading up to 2k was largely based on the general population entering the stock market. It looked like unbeatable horizon, and it was - for the simple reason that as demand increased the prices went up. Unfortunately, because stock prices are based on people's expectations, the prices have kind of peaked. Anyone that was going to jump into the market pretty much has, and the demand has leveled off. The prices would level off, but a lot of the price was based on an expectation that the doubling and tripling of stock prices over the course of 5-10 years, something that is simply not sustainable. Now people are disappointed by anything that isn't a 4-bagger in 2 years, leading to price crashes. This would be a great time to enter the market and make your fortune off of stock shorting, as this neophyte disappointment is just going to snowball.
So stock prices are a popularity contest. So is the real estate market - everyone wants to root for the winner. This leads to tremendous opportunity to mislead the market - marketing your piece of the market can be more important than any research into what the next big thing will be. Success is defined as being identified as successful.
http://news.yahoo.com/s/nm/20060608/ts_nm/economy_washington_dc_2
(this post is just an excuse to break in some new icons)
I'm in the office practically alone the next couple of days, and with very little to do. Oh bliss! After all those months of constant stress, unreasonable timelines, and political BS I'm now getting a reprieve. Too bad it's now when I don't really need the time. This is even an easy week for summer school, with not much reading to do. I may get a head start on the 200 pages I need to cover for next week.
Looking at a media PC to consolidate my entertainment needs. I really really really need a subwoofer. I may also address a car stereo.
Stocks - weird revelation. I ran into an opinion on stocks that just blows my mind and growth/income calculations out of the water. Stocks are not priced based on expected future earnings! Their true value is found in the general stock-buying population's general belief about the sale value of the stock. That's it - it's a fucking popularity contest. All you ever needed to know about the stock market you learned in middle school.
Now, the this popularity may be related to earnings, which can be monitored from forecasts and predictions. It may well be that the company is a solid one with rich benefits for investors. It may also be that people are predicting which sectors of the market will do well given certain economic conditions. Still - while there is a correlation between dividends and stock price, the relationship is weak and getting weaker. Weak - it's only used by experts to gauge how well the stock will sell.
Getting weaker? The stock market boom leading up to 2k was largely based on the general population entering the stock market. It looked like unbeatable horizon, and it was - for the simple reason that as demand increased the prices went up. Unfortunately, because stock prices are based on people's expectations, the prices have kind of peaked. Anyone that was going to jump into the market pretty much has, and the demand has leveled off. The prices would level off, but a lot of the price was based on an expectation that the doubling and tripling of stock prices over the course of 5-10 years, something that is simply not sustainable. Now people are disappointed by anything that isn't a 4-bagger in 2 years, leading to price crashes. This would be a great time to enter the market and make your fortune off of stock shorting, as this neophyte disappointment is just going to snowball.
So stock prices are a popularity contest. So is the real estate market - everyone wants to root for the winner. This leads to tremendous opportunity to mislead the market - marketing your piece of the market can be more important than any research into what the next big thing will be. Success is defined as being identified as successful.
