Positional stocks

January 26, 2012

Conspicuous consumption — buying what others can’t afford — is a disequilibriating force.  Prices get raised and supply is limited.  The goods that are conspicuously consumed are positional goods.

A similar phenomenon occurs in the stock market.  AAPL currently seems to fit the mold.  Fashion changes.  I don’t much believe in predictions, but I predict that “bite of Apple” will have a new connotation in the foreseeable future.

Epilogue

Perhaps the best possible explanation of “positional good”.

Subscribe to the Portfolio Probe blog by Email

Latest posts

Leave a Reply

Related posts

  • What does ‘passive investing’ really mean?

    February 20, 2012

    We know the words but what do they mean? Some definitions Here are some definitions of "passive investment management". Investopedia says: A style of management associated with mutual and [...]

  • Lessons from warblers and sticklebacks

    January 11, 2012

    Falkenblog has a post on ecological studies of animal intelligence. The entire post is interesting, but I particularly like his last sentence: [I]f you think that because you have [...]

  • The carry trade — almost wordless

    November 28, 2011

    The idea Borrow in a currency with low interest rates, lend in a currency with high interest rates. The image Photo by Patti via stock.xchng The question Am I [...]