Agree To Disagree

After reading The Little Boy And The Dollar Notes From La Papillion, I noticed a lot of ideas and comments shared.

It just reminded me of situations where everyone has a view and everyone thinks they are correct or have the best answer. Ultimately, maybe only one side is correct. But does it make the other side incorrect?

Yes and No. Yes, they are incorrect because the results proved them to be so in the end. However, No, because, based on the information both sides had prior to the results, they both made valid points and none were the wiser at that point in time. The final results could boil down right to the luck of the draw eventually.

Sometimes it is important to step back and consider other people's point of view. Step into their shoes and take their frame of reference rather than a face off and arguing. You can still disagree with them, but there is no need to put down their view, just be willing to Agree To Disagree.

This happens in a transparent and open market like the stock market. Everyone is constantly agreeing to disagree. Why do I say that?

For every transaction, there is a buyer and there is a seller. The buyer thinks that the current price is cheap and the seller thinks that the price is expensive. They agree to disagree and the transaction is settled. The buyer has his point of view, markets are oversold, good valuations, recovery, TA signals "BUY", analysts recommendations, etc. Similarly, the sellers also have their set of reasons, markets overheated, overbought, recessionary forces, bearish indicators, TA signals "SELL", analysts with SELL calls, etc. Recently, I read on the same page of a newspaper, the headlines of two separate articles: (1) Markets Sell Off Due to Greek Debt Crisis; (2) Oil Prices Ease Due to Impending Greek Debt Resolution.

As defined from what I once read: Price is defined as the amount the next greater fool is willing to pay.

Similar to my posting on the $880k HDB, everyone has their point of property prices. The sellers feel the market will enter a correction. The buyers feel that the sky's the limit. What if the correction never comes and the sellers will be cursing themselves. What if a reversal occurs and the buyers have overpaid. Time will tell, but right now, I agree to disagree.