correction vs spec stocks, page-19

Bazza49 the simple explanation is that the markets go from periods of prosperity to depression (depression does not mean down, can be sideways like 1966-1982 & 1899-1921).

When it’s in a period of prosperity like it is now, people don't see the risk; they get greedy and look for big returns, thus speculative stocks shoot.

Like ways in periods of depression people are pessimistic and stay away from specs and thus they go back to periods of low volumes and depressed prices.

Have a look at any spec stock that’s been listed for 20 years or so, they have a massive spike up then plunge and do nothing for 15yrs or so then it repeats all over again. Only a few such as OXR turns out.

This cycle is measurable and its certain people that are attracted to certain stocks, this same thing that attracts them also repels them and thus why the stocks (commodities) fall as quick as they rise.

There is no better stock to prove this “that certain people are attracted to certain stocks”, take a look at NRT’s board on here and yahoo.com (NVGN), to separate boards in 2 different countries, the people are exactly the same, intelligent, hopeful & clueless.