Daily Speculations

The Web Site of Victor Niederhoffer & Laurel Kenner

Dedicated to the scientific method, free markets, deflating ballyhoo, creating value, and laughter;  a forum for us to use our meager abilities to make the world of specinvestments a better place.

 

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12/14/04
Shopping for Holiday Bargains, by James Sogi

Over the holidays many spend time shopping around for good deals. It's worth shopping round for a good price on your market purchases or waiting for a sale. The idea of buying after prices shot up wouldn't make sense to a prudent shopper. Seems like the big indexes are marked up pretty high at retail before the holiday, but looks like some good deals on commodities. Must be not many kids want 5000 bushels of corn. When I get a good deal on some hot item, I don't really get too bent out of shape when the next guy gets a few cents better deal, and it may inspire me to buy a few more if the price is good. Watching price bars go down after buying can be disconcerting, but seeing an occasion to buy more can ease the feeling as it's rare to get the bottom tick. It helps of course to have some measure that the price is good, the goods are high quality items and that you'll have a chance to unload some inventory later this spring for a better price to some anxious buyers who like to buy when prices are rising fast. Seems like a regular kind of deal. Just don't buy too many cabbage patch dolls though, since no one wants one after Christmas. The idea of approaching market operations as holding a good supply of inventory at good prices like the retailers and specialists (or horse traders) do took me some mental paradigm shifting, from a directional bar hopping mentality.