SELL!
SELL!
SELL!
SELL!
SELL! SELL!
Sell. Yes. Precisely. And then a few days later, this same sophisticated person says, (calmly and pleasantly) "You know, I think things are going rather well." And everybody says, "You know actually I think I agree with you." "You know, I think we're rich." "We're rich." "Yes!"
Rich! Yes! BUY, BUY, BUY!
BUY, BUY, BUY! Yes. And that is what we call market sentiment.
Yes. Well, surely we are exaggerating just a bit, aren't we?
Well, I don't know. IN August of this past year, when the market actually plunged in London, the well-known city firm, the State Streets Global markets issued a statement in which it said, and I quote, "Market participants don't know whether to buy on the rumor and sell on the news, do the opposite, do both, or do neither depending on which way the wind is blowing."
Yes, and this is the kind of rigorous analysis we've come to expect and we'll pay huge salaries for.
Exactly. And a few days later when the markets have gone up a little bit, the senior equities advisor on ABN AMRO Morgan said, "We're back to happy days again." [Smiling pleasantly]
Well, no price is too high for that kind of mature wisdom.
Certainly. This kind of people are paid millions of pounds in bonuses.
Yes of course. There have been actual causes behind the volatility in the markets Specifically and especially in America, granting vast numbers of mortgages to people who can't afford them on properties which are diminishing in value.
Yes. This is the so-called, sub-prime market.
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