Claire Corlett

Fish Food, Fish Tanks, and More
L’effetto della domanda e dell’offerta sui corsi dei titoli | Fisher Investments Italia [2019]

L’effetto della domanda e dell’offerta sui corsi dei titoli | Fisher Investments Italia [2019]


supply-and-demand movements impact on stocks is one of the hardest things for people to understand they operate very differently we all know from the days we took economics in school that prices of things are supposed to be impacted and driven by shifts in supply and demand but those little curves that they drew you in school aren’t the way they work in capital markets capital markets are nonlinear and there’s a lot of funny little qualities but let me just take a second demand is about eagerness to own and that’s about humaneness and demand bounces around within a fairly tight bandwidth pretty rapidly people move from being very optimistic too pessimistic back and forth pretty quickly new shake some feeling shake them the flu shake some when we all get to optimistic or too pessimistic either one for too long we fatigue at that because it takes energy to get away from our normal levels of optimism or pessimism and then we tend to revert back to the mean so there’s this relatively rapid moving thing that moves too high too low bounces around and pushes prices in the short-term off of any reason no reason crazy reasons supply is this other thing that’s in the long term more powerful and more linked to economics and when it’s in the company’s interest of eyevac stock and destroy it because that increases their earnings per share they’ll do that when it’s in company’s interests to create new stock supply they’ll do that but it takes longer because there’s a regulatory process and there’s a marketing process they’re not sure they’ll succeed so they get more eager to create supply but that eagerness has to be extended over a longer time period in the long term supply can overwhelm any demand because demand bounces around on a fairly tight bandwidth but rapidly supply moves slowly but nearly infinitely it can overwhelm any of demand whether it’s overly high demand or overly low demand so in the short term demand impacts what happens to stock Wiggles in the long term its supply this is very parallel to Warren Buffett’s famous line that in the short term stocks are a voting machine sentiment and in the long term they’re a weighing machine supply so when you think about stocks movements the short term think demand when you think about them in the long term think supply you

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