Bandwagon

http://www.dacharts.com/articles/_bandwagon.htm


“The Bandwagon/MOB theory”
Okay then, This link is very telling to me….and it explains a lot about why things, not JUST the stock market, work the way they do.
The writer makes the point out that moves in the market are the result of planning by powerful people to entice us the little people into investing without THINKING! They know that we, again ‘the little people’ want to be as rich and powerful as they, ‘the powerful people’. They know that the majority will jump on the wagon so as not to be left at the station when the gravy train pulls out.
The are right! We see them supposedly racing toward a position all the while hoping there is room for us as well. We jump on the ‘bandwagon’ and gleefully hold onto the idea that we too will soon be richer that before. This causes us to be blind to reality!
The same thing happened in the run up to the ‘29 crash. People ran toward the market, buying on margin without regard to the possibility of a fall in the market causing a margin call..oops!
The same thing happened in the ‘dot-com’ bubble run up. How many of us know a millionaire com hundred-aire after that mess? Same with the recent housing disaster. Who cared what we paid for that house? We all knew that we could sell it for even more in short order. We all know how smart that was.
Yes, the writer is correct, about as lot of things. Most correct that we don’t learn from our mistakes. Our collective memory is very very short. We will continue to do it ‘to ourselves’ until we crash again and swear to God we’ve learned THIS TIME.
Sure we did. ‘Only a matter of time until we all troop off the short end of the bridge because the big guys are all heading that way!’ Wake up sisters and brothers! Someday, someday, we’ll all wish we had used our heads, I promise you!