MRS. Market disagrees.Mr. Market is always correct.
Only because Ms. Market has a well established reputation for FTSEing Mr. Market over, and over, again and again and again.MRS. Market disagrees.
The customer is always correct!? No, the customer is always the customer.For those discombobulated by recent wild swings in commodity and stock markets.
Mr. Market is always correct.
The customer is always correct!? No, the customer is always the customer.
that is true. and in 'the market' there are many sectorsThe market is the aggregate of its participants. In modern markets we should think very deeply about who the participants actually are and what their power is.
Having performed that analysis then, we must realise that modern markets are not really true instruments of price discovery, but a reflection of the goals of the predominant players.
Although inflation, debt, and war are not driving the price of gold. What’s driving gold is simply the chart. Gold trades more technically than any other asset. Commodities in general trade very technically, and I tend to succeed with commodities more than stocks, which trade in a much more efficient market.
The one thing you need to understand about gold is that 99% of the flows are speculative—price discovery takes place in the futures market, where an entire year’s worth of mine production can trade in one day. GLD and gold equities are also large, but nothing compared to the futures market. And the big players in the futures market can push the price around significantly. For years, they pushed it lower. Now, they are being forced to cover and push it higher.
Yeahbutno.Forget the "modern markets" business, shenanigans have been around since markets existed.
Maybe not on day 1 though, probably day 2 or 3 when the "scheisters" worked out what to do and how to do it...
The modern thing is just much speedier and harder to prove the manipulation.
And the Reading for today, while focusing on gold, makes some interesting points on other asset classes:
Although inflation, debt, and war are not driving the price of gold. What’s driving gold is simply the chart. Gold trades more technically than any other asset. Commodities in general trade very technically, and I tend to succeed with commodities more than stocks, which trade in a much more efficient market.
The one thing you need to understand about gold is that 99% of the flows are speculative—price discovery takes place in the futures market, where an entire year’s worth of mine production can trade in one day. GLD and gold equities are also large, but nothing compared to the futures market. And the big players in the futures market can push the price around significantly. For years, they pushed it lower. Now, they are being forced to cover and push it higher.
@Garpal Gumnut, of course the market is correct. On any given day its moving (or not moving) in a direction that individuals may think is wrong or illogical. So who is wrong? Not the market - it is doing what it is doing so it must be right. Could it just be that there are a million people with different views on what it should be doing but who is to say these (biased) views are correct?For those discombobulated by recent wild swings in commodity and stock markets.
Remember.
Mr. Market is always correct.
gg
Yes it is. In addition, the past week highlights another truism, the market sells the rumour and buys the fact.For those discombobulated by recent wild swings in commodity and stock markets.
Remember.
Mr. Market is always correct.
gg
If the market was correct, eg the current prices reflected the future out put of the companies discounted back to today, then prices wouldn’t swing wildly.For those discombobulated by recent wild swings in commodity and stock markets.
Remember.
Mr. Market is always correct.
gg
I wrote on my Twitter this morning
"Market is the fundamental, price is always right. Follow the market."
One of my followers was not impressed and unfollowed me.
does that make Russia the new ( coming ) super power , because there aren't many FREE-markets left , and Russia may achieve ' Bradbury status ( the only unrigged market left standing )Margaret Thatcher in one of her more quotable quotes.
View attachment 157391Mick
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