Ask Dr. Economics: The Stock Market

Dear Dr. Economics,penny

Should I buy or sell General Electric.

–  Howard Theend
Anaconda, IN
✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉

Dear Howard,

Beats me,

– Dr. Economics
✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉

Dear Dr. Economics,

How, the heck, can you say you don’t know?

– Howard Theend                                                                                                                                                                                                                                                                        forecasting tool
✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉

Dear Mr. Theend,

I can say I don’t know because I know I don’t know.

– Dr. Economics
✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉

Dear Dr. Economics,

I know you can say you don’t know because you know you don’t know, but I know those stock market analysts on TV manage to make predictions. Why can’t you do the same?

– Howard Theend
✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉

Dear Mr. Theend,

Because the financial players with the billions of dollars have access to the same information. The price of a stock gets set according to that information. Random shocks account for any other movement of the stock’s price.

– Howard Theend
✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉

Dear Dr. Economics,

Then the analysts don’t know either. 1) How come they then talk for a half hour predicting stock prices? 2) How come you just say “Beats me?”

– Howard Theend
✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉

Dear Mr. Theend,

1) They get paid to predict for a half hour. 2) I don’t get paid to predict.

– Dr. Economics
✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉

Dear Dr. Economics,

How do you predict if the price of a particular stock is going to rise or fall?

– Howard Theend
✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉  ✉

Dear Mr. Theend,

I flip a penny. I have a success rate in my predictions of 50%. I hope this helps.

– Dr. Economics

Send your questions about economics by commenting on this post.
cover

My cookbook, Eat Me: 169 Fun Recipes From All Over the World, is available in paperpack or Kindle on amazon.com

As an e-book on Nook

or on my website-where you can get a signed copy at: www.lordsoffun.com

Advertisements
Categories: Uncategorized | Tags: , , , , | Leave a comment

Post navigation

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Blog at WordPress.com.

%d bloggers like this: