how to read the stockmarket.
Frank has money, his drinking pals, Ernie, Dave and Pete have bugger-all. Nevertheless they discuss the rises and falls of the stockmarket every day as if they have invested millions and are subject to its delusional fluctuations, which amuses Frank, being one who does, have millions, no little thanks to his parents who treated him most favourably in their last will and testament.
Ernie relates the NASDAQ indices to his theories about the rise and decline of the ASX 500 – his standard. Dave uses the gold price to ascertain his investment strategy and Pete the weekly Real Estate clearance rates. Frank though has a unique view of the world of equity investments, his own index wrought painstakingly from a misspent youth that troubled regulatory authorities in a dozen countries before returning to the muddy Richmond with his fortune still intact.
Frank calls it the knicker index.
Buy when it’s on the way down. Sell when it’s on the way up.
Remind Frank in the stock market a rising tide floats all boats, however pigs get fat but hogs get slaughtered.