tag:blogger.com,1999:blog-7366878066073177705.post7364957164260017322..comments2024-02-09T18:16:45.614+00:00Comments on The Psy-Fi Blog: Tâtonnement: Groping for Stock Equilibriumtimarrhttp://www.blogger.com/profile/06254802085744425067noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7366878066073177705.post-60556965429017130442012-01-04T00:53:15.138+00:002012-01-04T00:53:15.138+00:00"It stands to reason, though, that if lots of..."It stands to reason, though, that if lots of people decide they want to buy shares just as companies start to withdraw them from the market that prices should go <b>down</b>."<br /><br />is that correct?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7366878066073177705.post-3910571941769079412010-08-07T17:44:03.255+01:002010-08-07T17:44:03.255+01:00I have a hard time seeing how the laws of supply a...I have a hard time seeing how the laws of supply and demand could work in a real way in the stock market. The thing that investors are seeking is not shares but dollar value. Regardless of how many shares are outstanding, dollar value can be (at least temporarily) whatever the investors want it to be. If they don't like the current price, they can just bid it up (only collectively, of course, not individually).<br /><br />That reality takes us (it seems to me) from a real world of limits (the supply and demand world) to a fantasy world of no limits (in the short term -- and price crashes when the Reality Principle asserts itself in the long run).<br /><br />RobRob Bennetthttp://arichlife.passionsaving.comnoreply@blogger.com