Transactions approach - 価格決定の原理
Transactions approachでは経済を各々の取引に分解して考える.
1. A transaction is an exchange of money (or credit) for a good, service, or asset.
2. A market is the all combination of transcations for a particular good.
3. An economy is created when you combine all the markets.
取引<市場<経済
All you need to know is the total amount of money spent and the total quantity of goods sold. "市場価格 = 支払われた総額 / 売れた品物数"
Buyer = private sector + government sector
このモデルの特徴は
1. Establish market prices by dividing total spending by total quantity of goods sold.
2.Identify the biggest buyers in the market.
5 categories of buyers in equity markets.
1. Dumb Money: Buy on good news after prices have already run up.
2. Dumb Funds: Large retirement and mutual funds. They are forced to always be long and fully invested.
3. Technical Players: Serve to amplify a trend that's already started. (Rather, we should look at turning points.)
4. Smart Hedge money: Ray Dalio, George Soros, and so on....
