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To: Capitalism2003
My, my, something touched a nerve for you.

The stock market is not just a simple reflection of the strength of the economy or business fundamentals. There are also some group behaviours going on, some herding, which is what the cycles are somtimes used to show.

That there is such group behaviour going on seems self evident to me. If you find that possibility threatening, then I'll wager a pint that this reflects more on you than it does the stock market.

However, since I am not paid nor qualified to be your analyst, either financial nor psychological, I will not be able to assist you in resolving that conundrum.

31 posted on 08/03/2003 2:11:49 AM PDT by ThePythonicCow (Mooo !!!!)
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To: ThePythonicCow
The stock market is not just a simple reflection of the strength of the economy or business fundamentals. There are also some group behaviours going on, some herding, which is what the cycles are somtimes used to show.

Yes, but these guys are using a very weak and naive predictive model. It is the kind of "analysis" that you expect someone with no experience in market prediction to come up with. Nobody in the business uses these kinds of models because they are known to give really lousy results in the general case. The kinds of mathematics actually used for state-of-the-art financial prediction are much more technologically sophisticated than what these guys are doing, and have MUCH better track records for accurate forecasting and prediction.

BTW, the best models to date are suggesting a slow-but-steady several year growth period. Nothing explosive, but good for business and the economy.

43 posted on 08/03/2003 2:29:32 PM PDT by tortoise (All these moments lost in time, like tears in the rain.)
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