Analogy of the Stock Market: The Monkey Story
(Story reproduced, author unknown)
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Once upon a time a man told a small village, I will buy monkeys for $10 each.
Since there were many monkeys in the forest, the villagers caught them and sold them to the man.
As the supply of monkeys diminished, the villagers efforts slowed, so the man offered them $20 each.
They renewed their efforts but the supply of monkeys diminished further, so he increased his price to $25.
Soon no one could even find a monkey in the forest.
The man increased his price to $50, but announced, Since I must go to the city on business, I authorize my assistant to buy monkeys on my behalf.
As soon as his boss was gone, the assistant told the villagers, My boss has collected lots of monkeys. Ill sell them to you for $35 and then, when he returns, you can sell them to him for $50.
The villagers rounded up all the money they could and bought as many monkeys as possible. Then they had monkeys everywhere
but they never saw the man or his assistant again.
And now you understand the workings of the stock market!
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This is the distribution phase, look at banks, mid cap, small cap. we see that most of the stocks are being distributing by the smart investors. very few stocks are showing strength. Now which sector lead the rally. is pharma and fmcg will take the nifty above 6300, i do'nt think so. present interest rate will not allow automobile and reality sector to perform well. so so so so so