The Little Muddy Farm

Stocks don’t vanish when sold; somebody owns the shares all the way to the bottom. These owners who refuse to sell because they have convinced themselves the next dip will be the hoped-for resumption of the bullish trend are called “bagholders.”

Trends are tricky. Humans anticipate the present conditions will continue on into the future. In economics and finance, we call this continuation a “trend.” Trends continue until something fundamental changes and the trend takes a new course.

If asset prices, credit, sales, jobs, tax revenues and profits are all expanding, we call this trend “bullish.”

If the economy and asset prices are contracting, we call this “bearish.”
[email protected] please e-mail .. Don't call me in the middle of the night. lol