05 July 2007

Supply and Demand - Who's responsible?!

Now that Portfolio Bunny has cleared up the little matter of supply and demand causing the rise and fall of stocks and the stock market, a new question rears its ugly head. Who determines supply and demand? I mean... who's responsible for this?!

Perhaps it is a mysterious group of people sitting in a back room of the NY stock exchange deciding what goes up or down for the day. No. That's not it, although the conspiracy theorists would like to think so...

Perhaps it is the analysts at brokerage firms making recommendations to buy or sell a stock that day. No. That's not it, although that bunch of egomaniacs would like to think so...

Perhaps it is the large pension plans and mutual funds. No. That's not it, although that group of egomaniacs would like to think so...

I know! It's the yahoos at CNBC! No. Although that bunch of talking heads would definitely like to think so...

So, if it's not the NYSE, or analysts, or mutual funds, or talking heads... who's responsible?!

Think about it! Portfolio Bunny will be back with the answer... so stay tuned!

No comments: