![]() |
| The Falcon |
It is the exclusive role and purpose of the speculator to provide liquidity and stability to the long term investor. This is a no mean feat. These are weak hands serving strong hands. Very few comments in the media seem to understand the role of speculation in the marketplace. A market without liquidity would implode and disappear altogether. When prices fall dramatically suddenly it is only speculators who will buy. No one else will and so the marketplace and price survives. Meanwhile the strong hands who hold, usually out of fear or greed themselves, are the ones who should be attacking and insulting their long term investor cousins who are selling or refusing to buy, not the speculators. When the strong hands long term investor wants in or out, the speculator is the only one who gives him a price. If the long term investor wants the price to stabilize where he thinks it should be so bad then why does he not step up to the window and buy it? Why weep and moan about those with the courage and the cash who do? It is not easy for the few to buy something the many no longer want under the pressure of the moment. The potential reward must meet the risk. This is the tribute fear must pay to greed.


No comments:
Post a Comment