Tuesday, January 7, 2014

Balance

A big key concept I have gotten from multiple sources is the big need for balance when it comes to the field of economics.

For example, the housing market. Some sources are positive about the rising house prices due to the low supply. Some are pessimistic that as the prices raise, it will reach a point that it effects people's willingness to buy a house and the market will be hurt again.

Optimal for growth is a balance, where the house sellers are benefitting from the sale, and house buyers are still willing to buy.

The movie market also needs to find a balance, which is apparently tough to do. Big budget pieces usually do well, and low budget ones don't need to make a ton, so they do okay, but a medium budget movie doesn't usually do well. Plus, they need to do certain things to appeal to the Chinese market, but too many concessions that way can hurt them with American viewers. Even the plot walks a fine line. An original idea, if good, can do better than a remake. But the remakes or based off book movies usually come with a sizable group of people who want to see the movie, and so feel more secure to the movie producers.

The government has to find a balance between the diametrically opposed Republicans and Democrats to accomplish anything. Their inability to do that at times is why we had the government shut down, and apparently also had huge cuts from budgets on both sides because they couldn't agree. This, to me, is ridiculous. Grown men should be able to find compromises without having to shut down the government first.

I know none of this really relates to investing, but more a sign of my increasing understanding of the world that the market operates in.


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