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The Marginal Buyer Holds The Pin That Pops Every Asset Bubble

So it's important to watch him very closely
Friday, August 19, 2016, 2:01 AM

Those of you who took an Economics class in college may remember the saying that prices are set "at the margin". That's a fancy way to say that prices are set by the person (or people) willing to pay the most.

This person willing to pay top dollar is called the "marginal buyer". Most of us don't really think about him, but he (or she) is very, very important.

Why? Because the marginal buyer not only determines price levels, but also their stability and degree of volatility. The behavior of the marginal buyer, as well as the degree of competition for his/her "top dog" spot, sets the prices of nearly every asset class held by today's investors. » Read more

Daily Digest

Image by mcconnell.franklin, Flickr Creative Commons

Daily Digest 6/3 - A Fight Over Water, In Search of a New Definition of Success

Monday, June 3, 2013, 11:45 AM
  • Beyond Money and Power (and Stress and Burnout): In Search of a New Definition of Success
  • Back to the Land is Back in Vogue, and It Could Make You Happier
  • The Greatest Fundamental Reason to own Precious Metals
  • A Fight Over Water, and to Save a Way of Life
  • China Is Reaping Biggest Benefits of Iraq Oil Boom
  • If Oil Prices Rise the EU May not Survive
  • Natural Gas Trucking: A Made-in-B.C. Success Story