Monday, September 26, 2011

Why is this so shocking?

1 comment:

  1. Luke,

    Don't forget about incentives- why is this guy going to the trouble to do this interview?

    Usually the interviewed party is on air at the request of his firm in a marketing effort (wow, that analyst/economist/strategist at XYZ securities sure is smart, I'll put my money in their mutual fund!). This guy is an "independent trader".

    That means he is on the show for one of these reasons:

    1) He is trying to find a job
    2) He is short the market and wants to get out of that position (he secretly thinks the market will go up)
    3) He wants to be long, so is trying to encourage others to get on the other side of his trade (he secretly thinks the market will go up)
    4) He genuinely wants to help others

    If I learned anything in your class, it's that if the answer isn't #4.