How the Stock Market Works

Great parable for investors in stock market.....or for people following any short-term panic. (Sent by friend at church)

It was autumn, and the Red Indians asked their New Chief if the winter
was going to be cold or mild. Since he was a Red Indian chief in a
modern society, he couldn't tell what the weather was going to be.

Nevertheless, to be on the safe side, he replied to his Tribe that the
winter was indeed going to be cold and that the members of the village
should collect wood to be prepared.

But also being a practical leader, after several days he got an idea.
He went to the phone booth, called the National Weather Service and
asked 'Is the coming winter going to be cold?'

'It looks like this winter is going to be quite cold indeed,' the
weather man Responded.

So the Chief went back to his people and told them to collect even
more wood. A week later, he called the National Weather Service again.
'Is it going to be a very cold winter?'

'Yes,' the man at National Weather Service again replied, 'It's
definitely going to be a very cold winter.'

The Chief again went back to his people and ordered them to collect
every scrap of wood they could find. Two weeks later, he called the
National Weather Service again. 'Are you absolutely sure that the
winter is going to be very cold?'

'Absolutely,' The Man replied. 'It's going to be one of the coldest
winters ever.'

'How can you be so sure?' the Chief asked.

The weatherman replied, 'The Red Indians are collecting wood like
crazy.'

This is how Stock Markets work.