2 ms·
If you were planning on buying more chickens tomorrow, you might be inclined to wait instead if the price is falling. Especially if the cost of hens relative t
by tcbawo 7y ago
If you were planning on buying more chickens tomorrow, you might be inclined to wait instead if the price is falling. Especially if the cost of hens relative to eggs is near an all-time high.
- sachdevap 7y agoAll time high has nothing to do with what the value will be anytime tomorrow. If you can't predict the value for the next day, what is the point of waiting to time the market. Besides, even the worst timers of the market do pretty well with disciplined investments.
- overcast 7y agoIt doesn't matter, that's the point. They are laying dividends that you wouldn't otherwise accumulate because you WAITED.
- tcbawo 7y agoWhat if the (expected profit per chicken)/(cost of chicken) was close to the return on a riskless asset, like a government bond? Wouldn't the farmer be more inclined to park money there than take the risk of buying more chickens?