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Do markets follow laws of human nature, or can they be manipulated at random?

 

At Mercatornet (August 23, 2011), we are invited to consider whether getting more women involved in floor trading would prevent future collapses. Trouble is,

So now we come to the key question: At Mercatornet (August 23, 2011), we are invited to consider whether getting more women involved in floor trading would prevent future collapses. Trouble is,

Trouble is,

So now we come to the key question: Is the floor trade world a natural outcome of human behaviour, into which some men and a much smaller proportion of women fit? Yes, probably.

My financial advisor tells me that the market is run by two principle human motives: Greed and fear. Bubbles and their subsequent collapses happen when greed overrides fear. Later, fear restores order and the market starts to recover. Which is to say that crazy markets and their corrections are caused by human nature. It’s hard to change the fundamental reality that a stock market is about people making decisions, wise or foolish.

An Italian proverb puts it like this: Three women and a goose make a market. All the rest follows.

More.

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One Response to Do markets follow laws of human nature, or can they be manipulated at random?

  1. Oh nonsense.
    first putting women in means taking men out and is discrimination and an attempt to rob the people of what they deserve.
    Second in these areas there is less room for affirmative action and therefore the truth of males prevailing over females is demonstrated.
    I don’t desire it but where its 50/50 theres something wrong.

    Markets are not driven by fear and greed. Thats stupid.
    The people in markets are as intelligent as they are in anything.
    Simply markets are based on opinions and people making these opinions without any knowledge.
    Smart but working with trivial data.
    On this trivial data people make decisions en mass and then correct themselves just as quick.
    The market is logical when presumptions are understood.
    Bubbles and busts are logical and anticipated by more astute people all tghe time.
    The market is about intelligent people drawing conclusions on little or no information. Therefore they tend to draw the same conclusions.
    Its not mysterious. its just people trying to gain money by doing nothing.
    And who know nothing. Smart, logical, but making decisions on little information.

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