Thursday, October 11, 2007

How stock market works...

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!!!

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