Sunday, February 8, 2015
Victoria DuBois, Chapter 7, Question #6
The part of chapter 7 that I found interesting was the part that Wheelan talks about the stock market being compared to the grocery store. He says "It's the things you can't predict that matter." I'm in intro to business this semester and so I understand that stocks move frequently and can be unpredictable, but with the analogy of the grocery store I now see a little bit more clearly just how unpredictable they can be. When the man he is using as an example sees the woman who was stuffing coupons into her purse go into one line, the man jumps into another one, but soon regrets his decision because the man into front of him needs to have the avocados he's buying price checked and his line is now moving slower than the line with the woman with all her coupons. Wheelan explains that there was no way for the man to predict that the man in front of him was going to take longer than the woman in the other line , and stocks work similarly. People predicted what was going to happen to the MicroStrategy business and their stock, but no one was able to see that the companies stock was going to take a 62% plunge and fall $140 in one day. So like I mentioned above, "It's the things you can't predict that matter."
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