Friday, October 06, 2006
REMEDIAL INVESTMENT MANAGEMENT
Widgets and Doodads
Andrew Cassel, the economic columnist on the Philadelphia Inquirer's business page, isn't playing Pollyanna today, he's just really confused or otherwise simple-minded, as indicated in the headline assigned to today's scribblings, the oddly apostrophed essay, "Stocks', Bonds' Puzzling Messages," where we encounter this:
A wise observer of financial markets once observed that every trade involves two views of the future -- and that one of them is wrong.
Think about it. If I buy your General Widget stock, I'm betting that Widget shares will be worth more tomorrow or next month than they are today. You, by implication, are betting the opposite.
We can't both be right.
This is just silly, entirely misguided, and easily refuted.
You see, I might be very happy to sell Cassel my shares of General Widget in order to obtain the cash I want to purchase shares of Consolidated Doodad, not because I think the price of General Widget's stock is going to be worth less in the future than it is now, but because I think my potential gain from investing in Consolidated Doodad will exceed that which I expect to earn from the more modest anticipated appreciation of General Widget.
It's really that simple.
| HOME |
The Rittenhouse Review |
Copyright 2002-2006 | PERMALINK |
|
|
|
| CONTACT |
|
Send E-Mail
JAMES MARTIN CAPOZZOLA
|
|
| BIO & STUFF |
|
James Martin (Jim) Capozzola launched The Rittenhouse Review in April 2002, TRR: The Lighter Side of Rittenhouse, HorowitzWatch, and Smarter Andrew Sullivan in July 2002, and Bulldogs for Kerry-Edwards in October 2004. He is also a contributing member of President Boxer.
He received the 2002 Koufax Award for Best Post> for "Al Gore and the Alpha Girls" (published November 25, 2002). Capozzola's record in the Koufax Awards includes two additional nominations for 2002 (Best Blog and Best Writing), three nominations for 2003 (Best Blog, Best Series, and Best Writing), and two finalist nominations in 2004 (Best Blog and Best Writing).
Capozzola’s experience beyond the blogosphere includes a lengthy career in financial journalism, securities analysis, and investment research, and in freelance writing, editing, ghost-writing, and writing instruction.
He earned his bachelor's degree in political science from the University at Albany and a master's in foreign affairs from the University of Virginia.
Capozzola lives in Philadelphia with his bulldog, Mildred.
|
| PUBLICATION NOTES |
|
Posts pertaining to site developments, news, and updates are subject to deletion and to withdrawal, and with respect thereto, without notice.
~~~~~
Access to linked articles may require registration or subscription.
~~~~~
Linked articles are subject to expiration at the sole discretion of the original publisher.
~~~~~
Letters received by The Rittenhouse Review are subject to publication in full and with complete citation and attribution, including the sender's mailing and/or e-mail address and/or addresses, unless otherwise specifically requested in writing and at the time of submission.
~~~~~
The publisher reserves the right to confirm the identity and/or identities of each, any, and all correspondents through and by whatever means legal and necessary.
~~~~~
Any and all correspondence received and published hereat is subject to editing by the publisher for content, particularly but with no limitations implied thereto, with respect to vulgarity and other offensive language, and length, at the complete, full, and unhindered discretion of same.
~~~~~
The decision to publish each or any correspondence, if at all, rests solely with the publisher of this site.
~~~~~
The publisher retains copyrights to all original material here published and any submissions here received, including correspondence directed hereto, whether or not published hereat, unless otherwise specified.
~~~~~
Obviously, no provision is here made for immediate comments from readers.
~~~~~
All rights reserved and all that.
|
|
|
| LINKS |
|
|
|
|
|