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  • Waiting on Investments

    Retail investment requires two kinds of trust:  one monetary and the other, a trust in expectations. Together, their demand for fulfillment is that the investor must wait. Necessarily, the investor spends a lot of time waiting: waiting for a good market entry point; waiting for a target exit point; waiting for market trends to turn; [...]

  • Duncan Donuts’ Linguistic Step Too Far

    It had happened before, but this morning I decided to discuss it with management: how my request for a “medium” coffee is met with the counter-person’s translation into “large”. It turns out that the 3 model cups on display are NOT small, medium, and large; but rather: medium, large, and extra-large. What happened to small? [...]

  • Waiting for Salvation or Damnation in a Stock Downturn

    Remember the sound of a falling tree in an un-peopled forest? Watching its price as a stock plummets in the absence of corporate explanation might echo the same sound: if the clamor from retail investors were not so loud! Recently, I’ve been studying equity message-boards in relation to investors’ management of anxiety as stocks descend [...]

  • Online Equity Message-Boards as Virtual Workteams

    To paraphrase Tolstoy, all buoyant stocks are the same; while the issues sinking fast are all different. Two types of decline are notable: the first is cacophonous— in which too much information and noise are continuous, as with BP stock during the 2010 Gulf oil spill. The other is silent: with the stock’s initial drop [...]

  • Emotions, Expectations, and Equity Message Boards

    Given that the annual trajectory of individual equities describes a bell-shaped price-curve reflective of aggregated emotions and expectations, there is a fascinating local development as passions and prices approach the tantalizingly underpriced (or overpriced) tails: the online message boards dedicated to individual stocks become the setting of passionate argument and diatribe reflecting the blood-sport of [...]

  • Equities and the Time Value of Emotion

    A commonplace in Finance I is the “time value of money”- the idea that future worth may be discounted to the present moment. But looking at the oscillation of stocks over a given time-period, spanning a universe of daily volatility unknowable in any discrete “present”, it makes you wonder about an equity’s present “value”. What [...]

May

This is the archive for May, 2011.

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