An interesting story of Red Indians
It was autumn, and the Red Indians asked their New Chief 'the winter is 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 weather man Responded.
So the Chief went back to his people and told them to collect even
. 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 the Colombo Stock Markets works!!!
(in both increasing and declining stock prices, no one knows why but just follow othesr ....)
Just think .... many Red indian chiefs, fellow red indians and weather men are around us!!
But, It is not new to CSE, the works here for months, if not years!
No expert trader/expert invester can predict this market, sameway that Red Indian chief couldn't predict the winter.
When it "made a mini-run" by manupulators, stocks start rising everybody rashed to BUY stocks, without having special reason. Then, investors are approaching the Stock Analyst/Advisors, they are comming to the picture and predicting that market is going to run - and recomend investors to BUY, like weather man did. Then, the investors again get rashed and BUY stocks like crazey dogs, as Stock Analyst/Advisors also confirmed the trend ..... market is going up more and more.
The inverse side is also true..... when it started a dip, investers are getting panic to SELL, Stock Analyst/Advisors are proudely present their predictions, and advise investors that the market is to fall more - better SELL and minimize the loss, (otherwise has to sell forcefully to clear debts). So, every body rushed to SELL stocks at any price and obviously market going down day by day, no body can stop the 'free fall' .....(this is what happeing these days at CSE)
If somebody very close to those Stock Analyst/Advisors, may ask the reason/how they predict that market
that is going to fall more .... no dobut they will reply .... "Look, investors are selling stocks like crazy ... if the market is not going to fall more, do you think these investors will SELL stocks at these barganing prices?"
So, the predictions of the Stock Analyst/Advisors are correct ... the trend will be continued .... untill existing investors fedup and going out of the market.
So, ..... the CSE version of the story is not much diffrence from Red Indians!