Tuesday, March 03, 2009

Why Financial Education is Important

One of our equity analysts forwarded this multiple choice question he found on CNBC's website. It asks, "After breaking 7,000, where's the Dow headed next?" The three choices are 5,000, 6,000, and 8,000. Amazingly, about one-third of the respondents answered 5,000. Which brings up an interesting question. How can the Dow go to 5,000 next without going to 6,000 first? Perhaps this group of respondents are the same people who created mortgage-backed derivative securities.