A Quote by George Soros
Market prices are always wrong in the sense that they present a biased view of the future.
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The generally accepted view is that markets are always right -- that is, market prices tend to discount future developments accurately even when it is unclear what those developments are. I start with the opposite view. I believe the market prices are always wrong in the sense that they present a biased view of the future.
The hardest thing over the years has been having the courage to go against the dominant wisdom of the time to have a view that is at variance with the present consensus and bet that view. The hard part is that the investor must measure himself not by his own perceptions of his performance, but by the objective measure of the market. The market has its own reality. In an immediate emotional sense the market is always right so if you take a variant point of view you will always be bombarded for some time by conventional wisdom as expressed by the market.
The Middle East would always be an important trading partner in just a market sense, like America is a big market for us, Asia is a big market, Europe is a big market. You are going to have hundreds of millions of consumers there, from just a standard market point of view, from a very narrow American point of view.
Market prices are always wrong.
In a narrow market, when prices are not getting anywhere to speak of but move within a narrow range, there is no sense in trying to anticipate what the next big movement is going to be. The thing to do is to watch the market, read the tape to determine the limits of the get nowhere prices, and make up your mind that you will not take an interest until the prices breaks through the limit in either direction.
If you expect to be a net saver during the next 5 years, should you hope for a higher or lower stock market during that period? Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.
The future is foretold from the past and the future is only possible because of the past. Without past and future, the present is partial. All time is eternally present and so all time is ours. There is no sense in forgetting and every sense in dreaming. Thus the present is made rich.
To economists, prices serve as crucial signals to producers and consumers. In a regulated market, the state sets prices high enough for private companies to cover their costs and earn a guaranteed profit for their investors. But in a deregulated market, prices should vary with demand and supply.
In a sense, the market, by expecting a fall in prices, discounts that fall and makes it happen right away instead of later. Expectations speed up future price reactions.
I contend that financial markets never reflect the underlying reality accurately; they always distort it in some way or another and the distortions find expression in market prices. Those distortions can, occasionally, find ways to affect the fundamentals that market prices are supposed to reflect.
There is no such thing as agflation. Rising commodity prices, or increases in any prices, do not cause inflation. Inflation is what causes prices to rise. Of course, in market economies, prices for individual goods and services rise and fall based on changes in supply and demand, but it is only through inflation that prices rise in aggregate.
In the spiritual world there are no time divisions such as the past, present and future; for they have contracted themselves into a single moment of the present where life quivers in its true sense. The past and the future are both rolled up in this present moment of illumination, and this present moment is not something standing still with all its contents, for it ceaselessly moves on.
In a free market capitalist system, 'price signals' are everything. Prices are determined by buyers and sellers in the free market, and these prices are broadcast from the exchanges, reaching all corners of the economy - where they are used to transact business.
The new is always made up of the old, or rather, what people see in the new is always the old thing. The rear-view mirror. The future of the future is the present, and this is something that people are terrified of.
Science fiction also provides a sense of nostalgia that is always present when it comes to Palestine, in that whenever we talk about Palestine, it is never in the present, but either remembering a past or imagining a better future. Submitting gritty Middle Eastern politics to high production sci-fi in this manner not only underlines the absurdity of the situation, but brings about a dystopian future scenario.
We human beings have enormous difficulty in focusing on the present; we always thinking about what we did, about how we could have done it better.... or else we think about the future, about what we're going to do.... But at this precise moment, you also realize that you can change your future by bringing the past into the present. Past and future only exist in our mind. The present moment, though, is outside of time, it's Eternity.... It isn't what you did in the past the will affect the present. It's what you do in the present that will redeem the past and thereby change the future.
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