Financial markets have all but decoupled from reality. The manipulation of interest rates has completely distorted prices. If prices don’t communicate useful information anymore, markets aren’t markets. They’re just vehicles for transferring money from one party to another.Read more ›
Post Tagged with: "Benjamin Graham"
Did you just hear that crack? That’s the sound of the stock market buckling under the pressure of a Greek bailout, a China hard landing, and a lack of faith in central banks. Both the Dow Jones Industrials and the S&P 500 were down by over 1.5% overnight.Read more ›
Investor emotion accounts for these fluctuations. Many years ago, Benjamin Graham characterised this emotion as ‘Mr Market’. Sometimes Mr Market was very happy and positive about the future and was willing to pay handsomely to buy shares. At other times, Mr Market thought the sky was falling in and wanted to give those same shares away at bargain prices.Read more ›