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(Slightly related) Losses as percentages always annoy me - a 2% loss is not made up by a subsequent 2% gain.
by j_s 12y ago
(Slightly related) Losses as percentages always annoy me - a 2% loss is not made up by a subsequent 2% gain.
- cpwright 12y agoThe only meaningful numbers are market cap changes or percentage changes. The numbers for the market cap are much bigger than most people can think of, and you need to know what the absolute value is to know how big of a relative change it is. What bothers me are per share prices. I don't remember the precise value of any particular stock, so IBM drops $13 means nothing to me. Also that a stock is $500 a share, so it must be good is another thing you see a bunch, so it must be great is another fallacy I see all the time; when really all that matters is the market cap not how many pieces it is divided into.
- justincormack 12y agoIBM just abandoned its $20 share price target so there was a bit of meaning in the price. But no there usually isn't. Edit I think it was $200. See numbers matter.
- big_co_ 12y agoShare prices have a strong psychological affect on many investors. This is why you will see increased buying and selling around certain price points and not market cap.
- simplemath 12y agoWhich just reinforces what a shell game all of it really is.
- mason55 12y agoThis is why you shouldn't hold leveraged ETFs for more than a day or two. They end up decaying quite quickly as the bounce around.