Professor Elam

Thursday April 19, 2012 6:40 AM

Last night in Intermed I I observed that a common complaint about American markets is the focus on short term results. I mentioned that San Antonio's own Sam Barshop the founder of La Qinta, complains of the same thing. As he observes one quarter is not a good measure of a national hotel chain.

Fund managers runtogether. They are usually all doing the same thing. A week ago talking heads unanimously recommended Apple. This week Apple is finally correcting. Last week they all bought Apple, this week they all sold Apple. 

Jeremy Grantham remarks on how this short term focused crowd behavior amplifies short term movements in prices, of everything.