Interesting story  to illustrate how the stock market functions.
It was autumn, and the Red  Indians on the remote reservation asked their New Chief if the winter was going  to be cold or mild.
Since he was a Red Indian chief  in a modern society, he couldn't tell what the weather was going to be.  Nevertheless, to be on the safe side,he replied to his Tribe that the winter was  indeed going to be cold and that the members of the village should collect wood  to be prepared. But also being a practical leader, after several days he got an  idea. He went to the phone  booth,  called the National Weather  Service  and asked 'Is the coming winter going to be cold?' 'It looks like this winter is  going to be quite cold indeed,' the meteorologist at the weather service  responded.
So the Chief went back to his people and told them  to collect even more Wood.
A week later, he called the  National Weather Service again. 'Is it going to be a very  cold  winter?'  'Yes,' the man at National Weather Service again replied, 'It's definitely going  to be a very cold winter. “The  Chief  again went back to his people and ordered them to collect every scrap of wood  they could find.
Two weeks later, he called the  National Weather Service again. 'Are you absolutely sure that the winter is  going to be very cold?' 'Absolutely', the man replied. 'It's going to be one of  the coldest winters ever.' 'How can you be so sure?' the Chief asked. The  weatherman replied, 'The Red Indians are collecting wood like  Crazy.'
This is how stock markets  work!!!
 
2 comments:
Awesome!!
And I think it is very true too - most of the people who "invest" in stocks go by herd mentality, instead of studying the fundamentals....
This article brought a BIG smile on my face!
This is a funny story and we will like to post it on our site with credit to your site.
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