February 12, 2010 Persuasion and the buzz
I want to make this a short post and convey a simple idea.
Do you ever sometimes get the feeling that issues in our society are blown out of proportion and seem worse than they actually are?
Given in the situation: In the stock market, there are buyers and sellers of stock, mutual funds, gold, silver etc.. Those buyers and sellers are humans and they try to make rational decisions. Now they are in the business of making money, getting the most out of everything they sell. Now what happens if ONE person can speak with a couple of people and offer their opinion on the outlook on one of those markets. “I feel that the market for gold is going to drop soon.” Have that little rumor spread through the market and see what happens.
The thing is, I get the feeling that some of these stock brokers and traders (even the day traders at home) can take these rumors and change the market accordingly. Thats how it works now doesn’t it? Yes, but what if I were some random person and I were to tell a few traders that one market will go up or down, obviously a rational person wouldn’t believe me unless I was a credible person, but lets say the do in their interest to gain money.
This is just one situation. But what does it take for a lot of people to believe it or react upon it? Just enough so that more influential people start talking about it. (Presidents, politicians, CEO’s)
I’m not starting a conspiracy, just want to get your opinion on the idea of it.
Check out this video about buzz marketing: