Tag: investors

Why Stocks Are Volatile

It is possible to understand why the price of a stock is so volatile.  It is because there are always two values for a given stock and they do not arise from the same fundamentals. Last October, I wrote about 19th century economist Knut… Continue Reading “Why Stocks Are Volatile”

Manage Expectations

Daniel Kahneman is a psychologist who won the 2002 Nobel Prize in economics.  An interesting combination.  How could that happen?   Perhaps the stock market is psychotic.  It is more likely that the people who invest there are not completely rational.  We can and should… Continue Reading “Manage Expectations”

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