Sunday, November 28, 2010

Beauty Contest

"The stock market is the type of beauty contest in which you choose the girl that most others will find most beautiful, not the girl you find most beautiful."

–Keynes


Is this in essence the difference between trading and investing?  The trader has an ability to see how everyone else will react where the fundamentalist try's to predict how economies will evolve to predict future valuations.  What does both the trader and long term investor have in common?  They both try to predict supply and demand based on current information.  So what has more risk?

 

1 comment:

  1. I have a project I call "REAL DATA". If any of y'all got some good data you want posted up for the public domain, for free, let me know. This is very preliminary work on my part. I hope someday that this is a real useful depository of mostly financial information.

    Jan 2, 2011 Adding: Historical Inflation Data to 1912, and historical oil price data. These are very interesting.

    Oil Prices to 1946 and Inflation to 1914

    Sentiment Data from 1987

    Earthquake List to Year 1900


    List of 1000 ETFs in Excel format

    List of 1000 ETFs

    At Hawaii Trading, there are 6 pages to the blog, one is called "REAL DATA SERIES" and you can find some neat stuff posted that you can download directly as an Excel file, and there will be some PDF's also. Mahalo for visiting!

    http://oahutrading.blogspot.com/p/real-data-series.html

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