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Mr. Market
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| FYI - For 2011, Dow up, Dogs of the Dow up more (double digits) |
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Mr. Market is a metaphore created by investor Benjamine Graham. Mr. Market symbolizes Mr. Graham's concepts of fundamental market investing. Graham's Mr. Market represents the stock market as a whole with Mr. Market emboding the emotional side of trading. Each day Mr. Market offers to buy or sell stocks at prices which may or may not reflect the true intrinsic fundamental value of the stock. When Mr. Market offers to sell a stock below its fundamental value, Graham sees this as a buying opportunity, and when Mr. Market offers a stock at a price above its fundamental value then Graham sees this as a sell signal. Graham's primary thesis is that Mr. Market is ruled by fear and greed and not by rational analysis and that an informed investor can take advantage of Mr. Market's irrational mood swings to reap financial rewards.
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