Are you currently shaking your head
wondering what is going on in the financial
markets?
Here is a short story that illustrates
it nicely.
In a village, a man
appeared and announced to the villagers
that he would buy monkeys for $10 each.
The villagers, seeing that there were many
monkeys around, went out to the forest and
started catching them.
The man bought thousands at $10 and, as
supply started to diminish, the villagers
stopped their effort. He further announced
that he would now buy at $20 for a monkey.
This renewed the efforts of the villagers and
they started catching monkeys again.
Soon the supply diminished even further
and people started going back to their
farms. The offer increased to $25 each, and
the supply of monkeys became so small that
it was an effort to even find a monkey, let
alone catch it!
The man now announced that he would buy
monkeys at $50! However, since he had to
go to the city on some business, his
assistant would now buy on behalf of him.
In the absence of the man, the assistant told
the villagers. "Look at all these monkeys in
the big cage that the man has collected. I
will sell them to you at $35, and when the
man returns from the city, you can sell them
to him for $50 each."
The villagers rounded up all their savings
and bought all the monkeys.
They never saw the man nor his assistant
again, only monkeys everywhere!
Now you have a better understanding of
how the stock market works.
Have a blessed day
