Do-It-Yourself Economics

Recently, I was talking with Paul and expressed that though I work in finance, I don’t really understand the stock market itself.  He offered this awesome analogy:
Paul:  “Basically the Dow is like a 17-year-old, high school girl.  The emotions are up and down–all over the place.  Her parents buy her a car, she gets really happy–which is like the Dow gaining a lot of points.  She drives to school and catches her boyfriend kissing another girl in the parking lot, she gets really depressed or ‘loses points’.  And NASDAQ and S&P are like her best friends.”

6 thoughts on “Do-It-Yourself Economics

    • 100% correct. AND her boyfriend dumped her the same day she failed a chemistry pop quiz. Her parents grounded her over the test score and took away her car keys for 2 weeks.
      Way harsh.

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