For it is not sensible to pay for an investment of which you believe the prospective yield to justify a value of , if you also believe that the market will value it at three months hence. Thus the professional investor is forced to concern himself with the ghd hair straightener anticipation of impending changes, in the news or in the atmosphere, of the kind by which experience shows that the mass psychology of the market is most influenced. This is the inevitable result of investment markets organised with a view to socalled liquidity.
Of the maxims of orthodox finance none, surely, is more antisocial than the fetish of liquidity, the doctrine that it is a positive virtue on the part of investment institutions to concentrate their resources upon the holding of liquid securities. It forgets ghd purple straighteners that there is no such thing as liquidity of investment for the community as a whole. The social object of skilled investment should be to defeat the dark forces of time and ignorance which envelop our future. The actual, private object of the most skilled investment today is to beat the gun, as the Americans so well express it, to outwit the crowd, and to pass the bad, or depreciating, halfcrown to the other fellow.
This battle of wits to anticipate the basis of conventional valuation a few months hence, rather than the prospective yield of an investment over a ghd glamour limited edition long term of years, does not even require gulls amongst the public to feed the maws of the professional; it can be played by professionals amongst themselves. Nor is it necessary that anyone should keep his simple faith in the conventional basis of valuation having any genuine longterm validity. For it is, so to speak, a game of Snap, of Old Maid, of Musical Chairs a pastime in which he is victor who says Snap neither too soon nor too late, who passes the Old Maid to his neighbour before the game is over, who secures a chair for himself when the music stops.