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I bloggen min skriver jeg om det som faller meg inn der og da. Derfor har den ingen rød tråd eller samlende tema, med den konsekvens at kategorien Diverse ganske stor. Bloggen min inneholder meninger, anekdoter fra dagliglivet, konspirasjoner, anvendt finans, filosofering, dikt jeg har skrevet og mye mer. Den dagen det bare er tørt […]

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Finance applied to dating (4) – The six lessons of finance

There are 6 very important lessons of finance. Let us see if they can be applied to dating.

Finance relates to most things as a market. In the market there are suppliers and consumers. This looks like a good analogy for dating. We offer ourselves, and look for suitable dating objects. And where supply and demand meets, we find the market price. This is the point where the price the consumers bid and the supplier offer is equal. A very quick conclusion then is that those of us, who aren’t getting any, have priced out goods wrong.

We most likely demand too high a price for the goods we offer. Fortunately though, we do not have to sell the goods to the highest bidder, we can keep the goods to ourselves. We can say «Hrmmmff» to the whole market, or by all means; wait until a consumer who actually sees us for the priceless merchandise we really are shows up. The one who is willing to pay the right price (our price!) for the goods. Or we might be marketing our goods in the wrong market. Or it is such a weird package that nobody understands what to use it for.

And the other way around: the consumers, who aren’t getting any, are not willing to pay enough for the offered goods. They are stingy, have too many «Scrooge»-tendencies, in essence: they’re not getting any. They want a Mercedes; however they are only willing to pay for an old VW-beetle, full of rust and of unknown age.

It is no use for cranky suppliers to hiss over bad prices if they want to sell the goods, and it is no use for stingy consumers to bitch either, if the prices are too high. Because THE MARKET IS ALWAYS RIGHT. It is just as well to accept this.

Back to the 6 rules of finance.

1. Markets have no memory
We start with clean sheets and new crayons. The market says that what is done is done. And previous price movements have no bearing on future price developments.

I hardly think this applies to dating. For instance, you cannot show up after 3 months and think that you can still price your goods at the same level. The sheets are not clean, and the crayons are at least half used. Maybe you can get away with it for a while, by using a different picture and different information, but in the long run you will see that your value is substantially deteriorated.

2. Trust the market price
The prices hold all available information about individual assets. When all information is known, the asset is correctly priced in the market. Hence; it is impossible for an investor to get an above market return.

I’m afraid this one doesn’t hold water either. Since some market participants have books which are cooked worse than the books of Enron were. In profiles you either find plain lies, or you find seriously misleading information. There are no GAAP (Generally Accepted Accounting Practise) in the dating market, and no data are audited. An experienced dater knows that it is just the glossy front which is shown in the market. Some courses at the Police Academy or summer school with Sherlock Holmes will prove more useful that finance books to establish what the goods are really worth, when push comes to shove.

3. There are no financial illusions
Investors aren’t romantics; they are merely concerned with the profit they are entitled to. They couldn’t care less about society or the common good. The investor thinks: «What’s in it for me?»

This rule is 100% applicable. Everyone looks out for themselves. Nobody will give something for nothing. Everyone thinks «What’s in it for me» while spinning around trying to find a profile where bid and offer meets. They do not concern themselves with welfare, combating the bird flu (a common disease in the male online population, in my experience), or that the other person has needs, profit is all that matters. Some times on very short term profit (a roll in the hay) or on more long term profit (someone for me, with the emphasis on ME).

4. The Do-it-yourself alternative
Investors will not pay others to do what they can do just as well themselves. In a perfect market, where all available information is known, it is totally unnecessary to pay for such services. With all information out in the open, nobody can do it better than you can yourself.

Most investors choose to buzz around on their own. Author their own profiles, show their books to the extent they want, approach potential investors and offer their goods, or they scrutinise other offered goods as best they can. Some use marketing consultants (like me; 2snill has made gifs of my photos and mp3’s of me reading my poetry), but for the most part people just scoot around directionless and unsystematic.

But like explained above; all information is not known; books are seriously cooked, so here there should be a market for outsourcing of some services. Scattered attempts are made from time to time, by the recommendation of fine assets not suited for oneself, and warnings about total jerks. Some times determined arrangement of dates as well. Perhaps more of this should be done, in such an imperfect market. I can let my best friend meet potential investors first. She knows my demand curve very well, and has a clearer head than I do, when it comes to what I need. I am often blinded by books that turn out to have more off balance activity on the Cayman Islands than Enron ever had.

5. Seen one stock, seen them all
Investors do not buy a stock because it is unique; they buy it because it gives the correct reward given the risk it has.

No way. Enough. Stoppit! My stock IS unique. There is no stock like it. It has low risk and yields a high return. Why no one sees that I am an object for acquisition, is beyond me. Stupid market! I need more and more aggressive marketing.

6. Reading the inner life
If all information is known, and we can learn to read between the lines, today’s price says a lot about the future price.

Since we have already concluded that all information definitely is not known, this is of course not applicable. Hence; today’s prices say NADA about future prices.

CONCLUSION: We are approaching the boundaries of finance applied (sucessfully) to dating. Several basic conditions are not met, and the market is far from perfect. In fact, it is so lacking in perfection that most other things look like Sunday-school in comparison.

SOLUTION: More marketing as supplier and more analysis of accounts as consumer. Or selling the goods in other markets. To price down the assets is no option. How would THAT look? ISKWEW AS is correctly priced; the very imperfect market just has to see the light. So there!

CONCLUSION 2: The dating market is not always right.

Iskwew ©

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