Saturday, September 8, 2012

MUST Watch!!! Where does the money go when prices collapse....

Reality versus Fantasy!

Economic Bust - Boom - Bust - Boom cycle
= Reality -> Fantasy -> New Reality -> Fantasy cycle !!!
(or = Real value - Artificial value - Real value - Artificial value cycle!)

Of course, there is probably real growth involved, before each bust, but there is a lot of hype involved, as well. The upswings and downswings form a wave like pattern. There will ALWAYS be upswings and downswings. The problem is that public memory is short and people get caught in the frenzy. Rational thinking is replaced by greed and poor decisions are made. But people in the know / smart money profit from both upturns and downturns. 

Why is Warren Buffet successful in stocks?
He chases REAL value, not artificial value.


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