Monday, December 29, 2008

Stocks are marketed to create buying and selling interest

Being a retailer, I handle large amount of different kinds of stocks. Due to my scientific education, I know some products do not work, but sells like hotcakes due to marketing. Stocks are just like that. Stocks prices of some company hardly move but report strong fundamentals year in and year out, while stocks prices of cyclical companies rises and falls like the tide, showing gains and loses multiple times its NTA value over short period of time. Why? Because, cyclical stocks frequently hog the headlines. Changes are what professional traders want, because fast changes create oppurtunities to profit fast.

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