Animal Farm at the Stock Market

It's not the bulls and bears you need to avoid -- it's the bum steers. 

- Chuck, Hillis

Although the animal kingdom is not allowed inside, outside or around a stock market, there are a few exceptions to it. These privileged animals are the highlights of the business world and without them, everything would go hay-wire.

The bull, the bear, the chicken, the hog and the ostrich are the eminent personalities here and have reserved places of honour for themselves in the big, mighty world of business.

Histronics aside, lets understand how these ‘animals’ are important to the stock market.

The Bulls : A bull market is where everyone is optimistic and where everything in the economy is great. Everyone is finding jobs, the GDP is growing at a phenomenal rate and the stocks are rising.

A bull market doesn’t last for long because nothing good lasts for long!!

Picking stocks during a bull market is easy because everything is going up and it is also extremely profitable. But, there is a high risk involved in the stocks becoming over-valued.

Investors who are optimistic and believe that the stocks will go up, are known as Bulls.

The Bears : A bear market is exactly the opposite of a bull market. Here, everyone is pessimistic and everything in the economy is bad. There is recession, stock prices are falling, The GDP is growing at a dismal rate and hell is just looming over!

A bear market and a bull market are in a never-ending cycle. When one ends, the other begins and vice-versa.

So, when investors feel that the bear market is going to end, they start buying stocks in anticipation of a bull market or they try to make money while the stocks are falling and get away with whatever comes their way.

Investors who are pessimistic and believe that the stocks will drop, are known as Bears.

The Chickens : Chickens are those who are afraid to lose anything. They are not at all risk-taking people and would rather get out of the market completely.

All they want to do is make profits and, so they invest and divest only during a bull market.

They want to remain safe in their decisions and not risk losing even a bit of their earnings and investments.

The Hogs : Hogs are high-risk investors, looking to make big money fast and furious! They get impatient, greedy and emotional about their investment , and want everything in the minimum amount of time and with the maximum amount of short-cuts.

They don’t put in the proper time and money for the correct investment plans, and very often suffer huge losses because of such temperament and ill-knowledge.

Professional traders love the hogs, as the bears and the bulls reap the profits from their losses and mis-adventures. 

As usual, hogs are always slaughtered!

The Ostriches :  Ostriches are those who stick to age-old traditions and methods and are oblivious to all the changes that are taking place in the world, around them.

Shopping at the Black Market

"Tonight I’ve been dealing with a known killer, a male whore, a scam artist and now I’ve graduated to talking to a mayor. Who’s next? The President of the National Association of Rodents?"

— V. Alexander

Wonder what it feels like to be a part of the effervescent black or underground market? I mean, obviously if it’s out of bounds then it HAS to be exciting, right?

The market in general seems so boring and drab, but once the adage of ‘black’ is inserted, everything becomes mysterious, exciting and thrilling. But what is it with the black colour anyway? I mean, couldn’t they call it ‘yellow market” or “blue market” or even “pink market” for that matter??! It would surely get the ladies interested to go and check it out and not make it a male-centric place….AGAIN! *groans*

Alright, alright…am not propagating or advertising the Black Market here!! So calm down you’ll!!

Just the other day there was a discussion at home on the Black Market and it struck me that it is generally smaller in countries where economic freedom is greater, and it becomes progressively larger in those areas where corruption, regulation, or legal monopolies restrict economic activity in various goods, services, or trading groups.

No wonder India is such a heaven for the Black Market. I mean, who’s to blame when it’s true that the economic freedom here is next to nil!! Hmpf!!

The black money market situation in India is epidemical. India currently tops the list for black money in the entire world with almost US$1,456 billion in Swiss banks (USD 1.4 trillion approximately) in the form of unaccounted money.  According to the data provided by the Swiss Banking Association, India has more black money than the rest of the world combined. Indian Swiss bank account assets are worth 13 times (1300%) the country’s national debt, and, if this black money is brought back to the country, India has the potential to become one of the richest countries in the world, after the United States!

I’m for sure marrying an Indian now…most probably a cousin of Hasan Ali Khan or someone!!!!

C’mon a girl always dreams of marrying rich…how the money has been made or got is not her problem!!

Am kidding alright…I’m a responsible citizen of the world, so no more jokes. *solemn swear*

A Black Market runs on the basis of prices. Goods that are acquired illegally are either cheaper than the legal market prices or more expensive than them. It can range from selling chewing gums in parks to selling Prada bags for dirt!

If they are cheaper, then that’s coz they are stolen goods. Imagine the pen-drives sold outside CST…8 gb for 100 rupees…how awesome na? Nope. They are all “chori ka maal”.

If they are expensive then it’s definitely not legal or very difficult to get or produce. One word comes to my mind for this situation – DRUGS.

Another facet of this beautiful phenomenon is the Border Trade. I mean, sure if our border is with the Us of an A, but what’s there to get from Bangladesh? *no offence* But seriously, who wants booze from Bangladesh, man? To save on taxes, some fools evidently do! *swears*

Transportation providers, illegal drugs, prostitution, alcohol and tobacco, copyrighted media, currency, fuel are the main ingredients used to make the dish called Black Market.

The problem why this market flourishes is coz, though the economic goods are illegal, they are not seen by the society as particularly harmful. It’s the “chalta hai” attitude which encourages such markets to grow and flourish.

You are making extra dough, everyone around is making extra dough and all of you are getting to use products which are not readily available. It’s heaven, man! Although, this heaven doesn’t last very long and is followed by a very hell-ish time in prison or on the run!

The Underground Market flourishes the most during war times. Some people always gain from the misery of others! *swears*

Well, this happens because extended wars must necessarily impose restrictions on home use of critical resources that are needed for the war effort, such as food, gasoline, rubber, metal, etc., typically through rationing. In most cases, a black market develops to supply rationed goods at exorbitant prices.

According to Agorists, the Black Market is the most free market. Yeah right! And India is the second richest country in the world and we are all living in the lap of luxury! Grow up!

Seriously though, many solutions to the black market have been proposed, including deregulation, legalizing drugs and prostitution, and increasing supply of a particular black market good.

Whether they work on implementation or not is yet to be seen, but till then the Black Market is all free and flowing.

P.S. Mumbai Mirror is giving away Blackberry 9500, worth 20 grand for 9 grand.

I wonder…

;)