Added: 11/17/2006 |
Do you find the movements of the stock market at least somewhat confusing? During the last decade, over 70 percent of the richest 100 on Forbe's annual list made their money directly, or by inheriting from persons who made their money directly, from owning ONE stock for the long term. It is always the stock of a company the person founded and it is the rise in the stock price that made the person fabulously wealthy!
Sam Walton's heirs are four of the ten riches people in America and Sam Walton made his money because he was the biggest shareholder of Wal*Mart, the company he founded. Three of America's richest men made their money because they are the largest shareholders of Microsoft, Bill Gates, Paul Allen and Microsoft CEO Steve Ballmer. In Omaha, Nebraska, the hometown of Warren Buffet, hundreds of Berkshire Hathaway millionaire stockholders gathered at their annual meeting to hear Buffet speak. They are millionaires because they bought Berkshire Hathaway a long time ago and held onto the stock. Wouldn't it be nice to find the next Wal*Mart, Microsoft or Berkshire Hathaway and make a thousand times your investment? This is where the prediction market comes in.
Since the very beginnings of Financial Astrology, Financial Astrologers have been looking at the alignment of the planets to seek clues as to what will happen in the financial markets. Almost every major bottom or top in the major financial indices coincide within about a day of the formation of "precise planetary alignments". A planetary alignment is similar to planetary geometry. Dramatic events are most likely to happen when multiple planets are synchronized, meaning they are in the same degree of any of the twelve signs. The more planets are synchronized at any given time, the more likely the change that something meaningful will occur. When planets form symmetrical planetary geometry, they are more likely to indicate that a significant event in the financial markets will occur. But what? For this it is necessary to look at both the Heliocentric and geocentric charts and to include the True Node and the four major asteroids. Sound like a bunch of astrology gibberish? Well, when coupled with intelligent and disciplined investment strategies, identifying the days with special planetary geometry can improve a savvy investor's overall ability to make wise investment decisions.
Some academic research has focused on potential flaws with the prediction market concept. Some have tried to mathematically show that under a wide range of assumptions, the "predictions" of such markets do not closely correspond to the actual probability beliefs of the market participants unless the market probability is near either 0 or 1. The prediction market also suffers from the same types of inaccuracy as other kinds of markets. For example, liquidity or other factors not intended to be measured are taken into account as risk factors by the market participants, distorting the market probabilities. Prediction markets may also be subject to speculative bubbles. For example, in the year 2000, IBM presidential futures markets a flood of new traders in the final week of the election caused the market to gyrate wildly, making its "predictions" useless.
Whatever your strategies used, the prediction market should be scrutinized carefully before investing your life savings!
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