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February 24, 2005

How Stock Market functions

It was autumn, and the Red Indians on the remote reservation asked their New Chief if the winter was going to be cold or mild.

Since he was a Red Indian chief in a modern society, he couldn't tell what the weather was going to be.
Nevertheless, to be on the safe side, he replied to his Tribe that the winter was indeed going to be cold and that the members of the village should collect wood to be prepared.

But also being a practical leader, after several days he got an idea.

He went to the phone booth, called the National Weather Service and asked "Is the coming winter going to be cold?" "It looks like this winter is Going to be quite cold indeed," the meteorologist at the weather service responded.

So the Chief went back to his people and told them to collect even more wood. A week later, he called the National Weather Service again. "Is it going to be a very cold winter?" "Yes," the man at National Weather Service again replied, "It's definitely going to be a very cold winter. The Chief again went back to his people and ordered them to collect every scrap of wood they could find.

Two weeks later, he called the National Weather Service again. "Are you absolutely sure that the winter is going to be very cold?" "Absolutely, The man replied. "It's going to be one of the coldest winters ever."

"How can you be so sure?" the Chief asked.

The weatherman replied, "The Red Indians are collecting wood like crazy."

This is how stock markets work!!!

February 24, 2005 in Humor | Permalink


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Ahh...it all makes sense now!

Posted by: Arian | Feb 28, 2005 5:21:31 AM

Super......really interesting and good one.

Posted by: Tarun | Feb 24, 2005 10:03:31 PM

Best explanation I've read so far.

Posted by: Audrey | Feb 24, 2005 10:34:33 AM

It's a good story... and true on various levels.

Posted by: judith | Feb 24, 2005 9:01:51 AM

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