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12 Metaphors for the Stock and Bond Markets

  1. Sherman and Peabody: The bond market is Peabody who is thoughtful and knows what to do. The stock market is Sherman.
  2. Yogi and the Ranger: Yogi (stock market) is out to satisfy his appetite. The Ranger (bond market) is responsible for maintaining order.
  3. Musical chairs: the FED is playing the music, inviting the public to join the fun. When the music stops, the bankers will be sure to occupy the chairs.
  4. Pied piper: The FED and the bankers are enticing an ever larger crowd to follow them to a better place. The public will end up over a cliff, dashed on the rocks.
  5. Climbing mountains: Climbing is hard, at some point you reach the top, and the only way to go is down.
  6. Magnetic spin system: Energy and tension can only build to a certain point before there is a dramatic reversal.
  7. An ecosystem: To make money you can be a specialist like a woodpecker, or a generalist like a jay.
  8. Ideal engine: There is a theoretical limit to the efficiency of the markets.
  9. Playground of the devil: He moves prices to inflict the most pain upon the most people.
  10. Coyote and Roadrunner: Banks and hedge funds with direct connected high speed computers are the roadrunner. The ordinary investor is coyote.
  11. Quest for the Holy Grail: Whether you profit, is as much a function of what's inside your head, as it is an external search (Thanks to Van Tharp for this metaphor).
  12. A creek: There's a net flow in one direction, but there's plenty of examples going the other way.

© 2010-2012 Stefan Hollos and Richard Hollos

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