tag:blogger.com,1999:blog-3008642600708028986.post7841969749219168337..comments2023-09-07T20:42:08.035+08:00Comments on Market Uncle's Blog: Shopping vs Investing, behaviour peculiaritymarket unclehttp://www.blogger.com/profile/16460144334144587714noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-3008642600708028986.post-86746057943170955112010-08-14T16:09:00.823+08:002010-08-14T16:09:00.823+08:00The actual supply actually is dependent more on pe...The actual supply actually is dependent more on perception and reality. You pointed out yet another pecularity. When a 'real' sale ended. People merely stop buying. But when the price of a share shoot up, more people jump in to buy in fear of missing the boat (not missing a sale?) ... but only to regret doing so when the price saw a correction later. Bags or other branded goods depreciate upon purchase. But shares don't, so long as the business can continue as a going concern.Market Unclehttps://www.blogger.com/profile/13926458268187430049noreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-90840939754931331332010-08-09T15:10:33.001+08:002010-08-09T15:10:33.001+08:00I think one of the key issue has to do with supply...I think one of the key issue has to do with supply. If there's a limited supply and the prices go up, people will buy more in anticipation of higher prices later on. <br /><br />But for alot of the things that supply is not so limited, drop in prices will result in "rational" behaviour, ie. people will buy more. <br /><br />For the stock market, you can see the suppply as limited as well. Hence a price rise causes a "panic" buy, where people are afraid they will miss the boat and prices will keep going up.Roystonhttps://www.blogger.com/profile/17883963186215315521noreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-71111242577447080642010-08-08T22:03:42.106+08:002010-08-08T22:03:42.106+08:00Can't this technical analysis applies to real ...Can't this technical analysis applies to real world and stock market while as well? Why don't rising prices in LV bags signal more people to grab more and sell at a higher price later?Market Unclehttps://www.blogger.com/profile/13926458268187430049noreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-35860256234555266542010-08-07T10:00:03.063+08:002010-08-07T10:00:03.063+08:00I'm thinking another reason could be technical...I'm thinking another reason could be technical analysis. Cos a rising trend will give a signal for more people to jump in. <br /><br />The so called irrational behaviour is actually rationalised by technical analysis.Roystonhttps://www.blogger.com/profile/17883963186215315521noreply@blogger.com