The Market as Mass Mind

When analyzing any aspect of market behavior or when puzzling as to why the market did not move as we expected, it behooves us to keep this very simple fact in mind. The market is a very focused mass mind; it is the product of the total opinions of its participants on one topic ‘price.

If the market is a reflection of the minds of its participants and it did not move as we had anticipated there are only two possibilities, our assumption about market behavior was wrong or our facts were wrong.

If our facts were wrong that is the easier case; it can be corrected with better information. Market participants do not, of course, possess ‘perfect information’.


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