I see a purpose for commodity futures markets as a means of sending production signals... I also see a purpose for stock markets in their purest form as a means of generating investment capital.... but the business of trading stock at values above it's initial capitalization is pure speculation. I guess I don't see the point of that other than someone obviously hopes to profit by it... but that's still a gamble. If you look at the large pools of money that some of these 'funds' have been playing with over the last number of years... they're basically buying into a commodity. The size of their ask alone creates a demand that drives the price which creates a buying frenzy... but the only one that knows when the dump will happen is the original fund manager when he decides he can take enough profit to get out... then the sell off creates a price slide... but since the first guy is on the leading edge of the curve he gets to profit the most or at least hurt the least.
The other side of the coin, as you probably know.... is shares like Berkshire H that have very little trade volume and remain at a stable price. Those have far more value inherent that their face value....
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Today's Featured Article - A Question for Dads This recent topic from the Tractor Talk discussion board is being highlighted because it is an awesome display of the caliber of individuals that have made this site their own. The young person asking questions received positive feedback and advice from total strangers who "told it like it is" with the care many reserve for their own kids. The advice is timeless... so although it isn't necessarily antique tractor related, it will be prominently displayed in our archives to honor those who have the courage to ask and those who have the courage to respond in an honest, positive manner.
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