Demonstrations? The wrecking of offices? The burning of the flag of.. err sorry, no flags were burned yesterday! It was not a demonstration for Palestine, Iraq or against the Cartoons. This time it was the ‘investors’ taking to the street in front of the stock market. What on earth is happening?
I don’t have one piaster/cent invested in the stock market (yet), so I can afford to watch what’s happening with a little smile and some detachment.
I’ve been hearing comments from people like: “what is happening is not normal”. “The stock market in Jordan rises and falls in an ‘unrealistic’ manner”. “It’s all the fault of the 7eetan (the so-called ‘big whales/sharks of the market”. And yesterday the demonstration was accusing the regulatory authorities, the central bank, some public companies, some brokerage houses and the launching of too many IPOs for the “disaster”.
Well.. If there are unlawful practices, like insider trading or false disclosure, then the authorities need to do crack down on that, no question. But is that what’s all about?
I mean HELLO!
Haven’t those angry investors heard of the stock market crashes in the US or Asia. Haven’t they heard about the risks associated with trading stocks. Haven’t heard how some people that invested in the internet bubble of 90’s lost 90% or more of their money?
Or is the definition of ‘normal’ in the minds of our (apparently naive) investor community that things can only go up and up indefinitely. The stock market has risen TRI-FOLD over the past few years. And now a 20% correction or crash is seen as a national disaster!
It’s a lot of naive people who put their life savings into stocks (some even go into debt to buy stocks) and who treat the stock market like a guaranteed lottery ticket. The way these people talk about stocks is just hilarious. “Hey man, I heard this stock is really hot!”. Heard? Investment based on ‘rumors’ and ‘tips’ is not such a good idea. Betting all you investments on one ‘hot’ stock is bad investing.
I bet that many small investors don’t even look at company results and they probably don’t know a P/E ratio from a falafel sandwich. And now they accuse their brokers of ‘misleading’ them.
Dear Jordanians: welcome to capitalism. Yes there will be sharks. Yes there will be people playing the market. Yes there will be corrections and crashes. Learn to live with it.
Read these related posts on 360east:
- The plane that didn’t crash in Aqaba and the bomb that didn’t explode in Istanbul!
- Smoke in a public area and get fined JD 1000
- Steorn story makes Fox News
- A new species: stock-crazed Jordanians
- One month and 900 JDs later, my data is back from the dead
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