Quote for the Week
What the economists call fabrication or demand in use is inversely correlated with price. Or, more simply, you know, if gasoline prices go up, other things equal, you’re going to drive less. So price and demand are inversely correlated: basic economics. And that’s the way it is for things that are used. But in financial markets, it isn’t the case. That actually, demand is positively correlated with price. More people buy things when they go up; if stocks start to go up, more people want them than if they’re going down. The higher they go up, the greater the demand for them. That’s why you see people chasing mutual fund performance; it’s why you see the bubbles that you saw in technology and Internet stocks where all the money flowed in after they’d gone up a lot… It’s been very well established that demand follows price. — Bill Miller (source)
From the Archives
Last Call
- 8 Lessons for Investors from 2025 – Tker
- 2025: The Year in Charts – C. Bilello
- Warren Buffett: A Question of Character – R. Lowenstein
- 5 Key Investing Themes from Warren Buffett’s Early Letters – D. Harrell
- 25 Lessons on Money and Meaning – Root of All
- Asymmetry is All You Need – The Terminalist
- A Guide About Historical Tax Changes – Kindness FP
- Lessons from History: The Great Railroad Buildout – Fabricated Knowledge
- Why Most Education Apps Fail – Learning Dispatch
- We Live Like Royalty and Don’t Know It – New Atlantis