Watching the stock market is entertaining, to say the least. The turmoil and emotional and non-rational swings are both amusing and frightening. Let me give an example:
Corporations and businesses do their best to keep from hiring employees. Employees are not assets -- they are cost items. They encroach on the almighty profits.
So, when employers actually cut jobs, save money and spend it on either dividends or bonuses for the top executives, the price of their stock often rises. But wait!
When unemployment rises (because corporations and businesses downsize and cut jobs) the market goes down. The same people who make share prices to UP also make the market to DOWN for the same reasons -- just reasons looked at from a different angle.
Sadly, these people don't see the absurdity of their thinking. They probably would be helped by reading this blog. Or not. Maybe they are beyond help.
What do you think? Leave a comment and let us know.
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