Quotes & Sayings About Financial Markets

Here is an all-too-brief summary of Buffett's approach: He looks for what he calls "franchise" companies with strong consumer brands, easily understandable businesses, robust financial health, and near-monopolies in their markets, like H & R Block, Gillette, and the Washington Post Co. Buffett likes to snap up a stock when a scandal, big loss, or other bad news passes over it like a storm cloud - as when he bought Coca-Cola soon after its disastrous rollout of "New Coke" and the market crash of 1987. He also wants to see managers who set and meet realistic goals; build their businesses from within rather than through acquisition; allocate capital wisely; and do not pay themselves hundred-million-dollar jackpots of stock options. Buffett insists on steady and sustainable growth in earnings, so the company will be worth more in the future than it is today. — Benjamin Graham

In Asia, a lot of successful economies that had been living on their own saving, decided to open up their financial markets to international capital in the early 1990s. So here were countries doing quite well, but they decided they'd borrow a bit more and do even better. — Jeffrey Sachs

Credit is the air that financial markets breathe, and when the air is poisoned, there's no place to hide. — Charles R. Morris

I think we will have continuing danger from these markets and that we will have repeats of the financial crisis - [they] may differ in details but there will be significant financial downturns and disasters attributed to this regulatory gap, over and over, until we learn from experience — Brooksley Born

And finally, no matter how good the science gets, there are problems that inevitably depend on judgement, on art, on a feel for financial markets. — Martin Feldstein

The farmers markets were another step to giving people an opportunity to take more power over their own lives-and also to provide another outlet for organic produce. That is important because the production and distribution of food is increasingly being monopolized and controlled by large corporate structures, large financial structures. — Jerry Brown

The dark comes before dawn. The financial markets are under great pressure because of the lack of leadership during the transition period. — George Soros

THE CORRECTION, when it finally came, was not an overnight bursting of a bubble but a much more gentle letdown, a year-long leakage of value from key financial markets, a contraction too gradual to generate headlines and too predictable to seriously hurt anybody but fools and the working poor. — Jonathan Franzen

Developments in financial markets can have broad economic effects felt by many outside the markets. — Ben Bernanke

The U.S. financial markets had always been either corrupt or about to be corrupted. — Michael Lewis

If the EU and the US can cooperate successfully on regulating financial markets, everyone else will follow. — John Bruton

The Abyss. Globalization had many economic benefits but, as in our own times, the creation of a truly international economic network combined greater efficiency with greater fragility. In 1914 a highly optimized system crashed in what was, without doubt, the biggest financial collapse of all time. (Unlike in 1929 or in 2008, the world's major stock markets were forced to suspend trading for no less than five months.) — Niall Ferguson

I think it could have real changing effects on the financial markets of our country, it could cause investors to think more about real rates of return and that in turn could spawn new kinds of products, — Robert Rubin

Taking this view, it is possible to see financial markets as a laboratory for testing hypotheses, albeit not strictly scientific ones. The truth is, successful investing is a kind of alchemy. — George Soros

I believe that the general growth in large [financial] institutions have occurred in the context of an underlying structure of markets in which many of the larger risks are dramatically
I should say, fully
hedged. — Alan Greenspan

I don't want to drive the markets crazy. I don't want to create trouble, but rather order and rules and norms. We have to struggle against financial excesses, those who speculate with sovereign debt, those who develop financial products which have done so much harm. — Francois Hollande

How good are markets in predicting real-world developments? Reading the record, it is striking how many calamities that I anticipated did not in fact materialise.
Financial markets constantly anticipate events, both on the positive and on the negative side, which fail to materialise exactly because they have been anticipated.
It is an old joke that the stock market has predicted seven of the last two recessions. Markets are often wrong. — George Soros

Markets will always move ahead of the news. — Joseph Granville

Cause and effect, the riddle of all history, is a particular devil in financial history; and never more so than today, where entire classes of security are collapsing not on public exchanges and stock-tickers but because there are no markets to establish prices this side of nothing. — James Buchan

Capitalism cannot cause a financial crisis because capitalism is about markets constantly correcting errors. It is government intervention that can and often does cause crises, — John Tamny

You cannot cheat with the law of conservation of violence: all violence is paid for, and for example, the structural violence exerted by the financial markets, in the form of layoffs, loss of security, etc., is matched sooner or later in the form of suicides, crime and delinquency, drug addiction, alcoholism, a whole host of minor and major everyday acts of violence. — Pierre Bourdieu

Lack of ethics is so ingrained in the financial industry that they are not even aware of it any more. It's just business as usual for them. — Robert Rolih

The stability of global financial markets is a public good. If governments fail to protect this public good, then those who suffer are the working people of the world whose jobs, whose homes, and whose standard of living depends on it. — Kevin Rudd

Creating a regulatory system that reflects the modern-day realities of financial markets is not as difficult as it may appear. — Paul Singer

For instance, a new kind of rich person named John Henry bought the Florida Marlins in January 1999. Most baseball owners were either heirs, or empire builders of one sort or another, or both. Henry had made his money in the intelligent end of the financial markets. He had an instinctive feel for the way statistical analysis could turn up inefficiencies in human affairs. Inefficiencies in the financial markets had made Henry a billionaire - and he saw some familiar idiocies in the market for baseball players. — Anonymous

The insurance companies do not refer to the key policy rate when they send their statements. We can only control that rate. Long-term interest rates are determined largely by global financial markets. — Mario Draghi

Big banks churn out page after page of incomprehensible fine print to obscure the cost and risks of checking accounts, credit cards, mortgages and other financial products. The result is that consumers can't make direct product comparisons, markets aren't competitive, and costs are higher. If the playing field is leveled and the broken market fixed, a lot more money will stay in the pockets of millions of hard-working families. That's real stimulus - money to families, without increasing our national debt. — Elizabeth Warren

If we start to think about trust as a public good (like clean air and water), we see that we can all benefit from higher levels of trust in terms of communicating with others, making financial transitions smoother, simplifying contracts, and many other business and social activities. Without constant suspicion, we can get more out of our exchanges with others while spending less time making sure that others will fulfill their promises to us. Yet as the tragedy of commons exemplifies, in the short term it is beneficial for each individual to violate and take advantage of the established trust.

I suspect that most people and companies miss or ignore the fact that trust is an important public resource and that losing it can have long-term negative consequences for everyone involved. It doesn't take much to violate trust. Just a few bad players in the market can spoil it for everyone else. — Dan Ariely

The truth is that banks are the last feudal kingdoms, their rulers omnipotent, divine warlords. Their key lieutenants are 'ronin' (wandering mercenary samurai) who roam financial markets ready to ally themselves to any warlord for a share of plunder. This is not the place to apply the latest management theory. — Satyajit Das

They had stumbled either upon a serious flaw in modern financial markets or into a great gambling run. Characteristically, they were not sure which it was. As Charlie pointed out, It's really hard to know when you're lucky and when you're smart. — Michael Lewis

Let us not be defeated by the tyranny of the world financial markets that threaten peace and democracy everywhere. — Stephane Hessel

In the past six months, our federal government has devised a dozen strategies to save America's financial markets. Each plan has been more costly, more risky, and less aligned with the principles of our country's free market economy than the last. I am disappointed to say that this latest plan puts all the rest of them to shame. — Michael Enzi

The imbalance results from ideologies which uphold the absolute autonomy of markets and financial speculation, and thus deny the right of control to States, which are themselves charged with providing for the common good. — Pope Francis

Deep and liquid markets in a country's domestic economy are the essential shock absorbers through which the perilous waters of international financial integration can be navigated. — Bibek Debroy

Selling drug secrets violates a trust that is fundamental to the integrity of both scientific research and our financial markets. — Chuck Grassley

The principal linkages between Japan and the U.S. global economies are trade, financial markets, and commodity markets. — Mark Zandi

The economic crisis, so conveniently operated and driven by the markets, by financial groups, by the needs of a globalized economy, faces the task of restoring social control, which the crisis of modernity lost sight of. — Zygmunt Bauman

In certain circumstances, financial markets can affect the so-called fundamentals which they are supposed to reflect. When that happens, markets enter into a state of dynamic disequilibrium and behave quite differently from what would be considered normal by the theory of efficient markets. Such boom/bust sequences do not arise very often, but when they do, they can be very disruptive, exactly because they affect the fundamentals of the economy. — George Soros

Regulators in Britain, America and Switzerland fined six banks - HSBC, Royal Bank of Scotland, UBS, Bank of America, JPMorgan Chase and Citigroup - a total of $4.3 billion for manipulating foreign exchange markets. Britain's Financial Conduct Authority said that traders at the banks had colluded to rig important benchmark exchange rates between 2008 and 2013. — Anonymous

Timing is everything in this markets. — Daniel S. Loeb

One of the most constant aspects of American life is change - and nowhere is it more evident than in our financial markets. — Henry Paulson

the function of the system of financial intermediation (banks and financial markets): to find the best possible uses for capital, such that each available unit of capital is invested where it is most productive (at the opposite ends of the earth, if need be) and pays the highest possible return to the investor. — Thomas Piketty

There are still deep-seated structural problems that threaten the economic balance in the world: Between the United States and China, for example, but also within Europe. We have taken a few steps toward taming the financial markets, but we haven't come nearly far enough to rule out a repetition of the crisis. — Peer Steinbruck

This decade is strewn with examples of bright people who thought they built a better mousetrap that could consistently extract abnormal returns from the financial markets. Some succeed for a time. But while there may occasionally be mis-configurations among market prices that allow abnormal returns, they do not persist. — Alan Greenspan

conventional energy sources (while nonrenewable) will continue to be used for at least 50 years. Thus, if our definition of sustainable goes to 50 years in the future, conventional energy sources are sustainable. Indeed, because of the effects of financial markets, as the cost of conventional fuel increases because of its depletion, we can anticipate that its extraction will slow as it is replaced by renewable energy sources. Thus we can readily see the continued use of conventional fuels for the next 100 years - barring some type of unexpected scientific breakthrough. — Betty Simkins

Free markets are necessary to promote long-term growth, but they are not self-regulating, particularly when it comes to banks and other large financial institutions. — Francis Fukuyama

The government can always rescue the markets or interfere with contract law whenever it deems convenient with little or no apparent cost. (Investors believe this now and, worse still, the government believes it as well. We are probably doomed to a lasting legacy of government tampering with financial markets and the economy, which is likely to create the mother of all moral hazards. The government is blissfully unaware of the wisdom of Friedrich Hayek: "The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.") — Seth Klarman

Arguably the most substantive domestic issue facing the republic is the fate of Social Security, with privatization the most frequently mentioned option. For the first time in history, a familiarity with the behavior of the financial markets has become a prerequisite for competent citizenship, apart from its obvious pecuniary value. Using — William J. Bernstein

Financial markets strive to be forward-looking, but not when it comes to underfollowed small cap stocks in obscure industries. Such stocks remain under the radar of most investors until they report huge acceleration in earnings growth. When a company that used to grow at 5 to 10% suddenly reports a 300% increase in earnings and a 100% increase in sales, it will grab the attention of many investors. — Ivaylo Ivanov

In falling markets, there is nothing that has not happened before. The bear or pessimist sees only the past, which imprisons the wretched financial soul in eternal circles of boom and bust and boom again. — James Buchan

Kevin Freeman has been warning America's leadership of the dangers of financial terrorism for the last three years. It is happening now and Kevin provides the evidence in his book Secret Weapon. Every American needs to understand how our financial markets have been manipulated by people who want to destroy the nation and how they can do even greater damage in the future. This book is a critical read for everyone. — William G. Boykin

In the financial markets, however, the connection between a marketable security and the underlying business is not as clear-cut. For investors in a marketable security the gain or loss associated with the various outcomes is not totally inherent in the underlying business; it also depends on the price paid, which is established by the marketplace. The view that risk is dependent on both the nature of investments and on their market price is very different from that described by beta. — Seth Klarman

I put forward a pretty general theory that financial markets are intrinsically unstable. That we really have a false picture when we think about markets tending towards equilibrium. — George Soros

Do not trust financial market risk models. Despite the predilection of some analysts to model the financial markets using sophisticated mathematics, the markets are governed by behavioral science, not physical science. — Seth Klarman

Consumer spending is now plunging at serious-recession rate ... even if the rescue now in train succeeds in unfreezing credit markets, the real economy has immense downward momentum. In addition to financial rescues, we need major stimulus programs. — Paul Krugman

I remain fundamentally optimistic about
Wall Street as a marketplace and as a vehicle for wealth creation. Its
future will rightly depend on several variables, chief among them
being human choices; whether they be rationally, emotionally, subjectively
or objectively made. Financial engineering taught us that if
it could be quantified, it could be qualified. We learned about how
to use leverage and have abused that knowledge for a myriad of
reasons. We became practitioners of the transaction-based model, but forgot that long before the abacus there was trust and integrity,
anchors of relationship-based models common with Middle East and
Asian markets. It goes back to a handshake, the first and enduring
example of mutual consensus. — Ziad K. Abdelnour

The financial markets are not to be trusted. They expect to be given free reign to make huge profits while the sun is shining, but hasten to the shelter of the state when the skies darken. — Peter Stalker

Upon graduation, believe it or not, I had no job. I had no interviews. I had no prospects. I had no worries. What I did have, I had passion. I had enormous passion. I had passion for financial markets. I had fallen in love with financial markets. — Gary Cohn

The Federal Reserve has always recognized the importance of allowing markets to work, and government oversight of financial firms will never be fully effective without the aid of strong market discipline. — Ben Bernanke

Well, as you know, we're working through a difficult period in our financial markets right now as we work off some of the past excesses. But the American people can remain confident in the soundness and the resilience of our financial system. — Henry Paulson

My single biggest financial concern is the loss of the dollar as the reserve currency. I can't imagine anything more disastrous to our country ... you're already seeing things in the markets that are suggesting that confidence in the dollar is waning ... I think you could see a 25% reduction in the standard of living in this country if the U.S. dollar was no longer the world's reserve currency. That's how valuable it is. — Sam Zell

Ever since the 2008 global financial crisis, central banks had ventured, not by choice but by necessity, ever deeper into the unfamiliar and tricky terrain of "unconventional monetary policies." They floored interest rates, heavily intervened in the functioning of markets, and pursued large-scale programs that outcompeted one another in purchasing securities in the marketplace; to top it all off, they aggressively sought to manipulate investor expectations and portfolio decisions. — Mohamed A El-Erian

The new social question is: democracy or the rule of the financial markets. We are currently witnessing the end of an era. The neoliberal ideology has failed worldwide. The U.S. movement Occupy Wall Street is a good example of this. — Sigmar Gabriel

ECONOMIC IMPACT - The United States buys almost three quarters of a trillion dollars ($738,000,000,000.00) more from overseas suppliers than it sells in exports (balance of trade deficit). Overall, the US buys about $ 2.5 trillion dollars in goods and services produced by the other nations of the world every year. With the United States gone as the world's economic engine, the remaining nations of the world will, in varying degrees, immediately suffer from staggering financial depression. The financial credit crisis that started in mid-September, 2008 in the United States, soon reverberated in stock markets across the world. — John Price

The financial markets tend to be just a backdrop for a novel, for a heist or something that isn't necessarily integral to it. On the whole, I don't think the financial world has been well served by novels. — Robert Harris

As financial markets continue to broaden and deepen, the behavior of asset prices will play an important role in the formulation of monetary policy going forward, perhaps a more important role than in the past. — Timothy Geithner

It's a familiar truism that at any one moment, financial markets are dominated by either fear or greed. But the healthiest markets are those that are animated by both fear and greed at the same time. — James Surowiecki

The reality is that financial markets are self-destabilizing; occasionally they tend toward disequilibrium, not equilibrium. — George Soros

We are all socialists now, it seems. John McCain, David Cameron and Gordon Brown attack bankers' irresponsible behaviour and salaries, and call for state intervention in the financial markets. But these calls will not get them elected or re-elected if they are addressed only to the banking sector. — Noreena Hertz

If we leave the European Union, there will be an immediate economic shock that will hit financial markets. People will not know what the future looks like. — George Osborne

The process of globalization has now interconnected almost everything ranging from financial markets to transport networks to communication systems in a huge system that no one really understands. — John L. Casti

Financial markets ... resent any kind of government interference but they hold a belief deep down that if conditions get really rough the authorities will step in. — George Soros

The current system is organized around financial values over life values. We need to shift that locus of power down to the community level because the financial markets recognize only money and thereby only financial values. — David Korten

Significant changes in the growth rate of money supply, even small ones, impact the financial markets first. Then, they impact changes in the real economy, usually in six to nine months, but in a range of three to 18 months. Usually in about two years in the US, they correlate with changes in the rate of inflation or deflation."
"The leads are long and variable, though the more inflation a society has experienced, history shows, the shorter the time lead will be between a change in money supply growth and the subsequent change in inflation. — Milton Friedman

The information superhighways will have the same effect as our present superhighways or motorways. They will cancel out the landscape, lay waste to the territory and abolish real distances. What is merely physical and geographical in the case of our motorways will assume its full dimensions in the electronic field with the abolition of mental distances and the absolute shrinkage of time. All short circuits (and the establishment of this planetary hyper-space is tantamount to one immense short circuit) produce electric shocks. What we see emerging here is no longer merely territorial desert, but social desert, employment desert, the body itself being laid waste by the very concentration of information. A kind of Big Crunch, contemporaneous with the Big Bang of the financial markets and the information networks. We are merely at the dawning of the process, but the waste and the wastelands are already growing much faster than the computerization process itself. — Jean Baudrillard

In the financial markets I find it easy to predict what will happen and very difficult to predict when it will happen. I think that things were clear during the bubble as to what would happen eventually. — Warren Buffett

If the invention of derivatives was the financial world's modernist dawn, the current crisis is unsettlingly like the birth of postmodernism. For anyone who studied literature in college in the past few decades, there is a weird familiarity about the current crisis: value, in the realm of finance capital, parallels the elusive nature of meaning in deconstrucitonism. According to Jacques Derrida, the doyen of the school, meaning can never be precisely located; instead, it is always 'deferred,' moved elsewhere, located in other meanings, which refer and defer to other meanings - a snake permanently and necessarily eating its own tail. This process is fluid and constant, but at moments the perpetual process of deferral stalls and collapses in on itself. Derrida called this moment an 'aporia,' from a Greek term meaning 'impasse.' There is something both amusing and appalling about seeing his theories acted out in the world markets to such cataclysmic effect. — John Lanchester

There are three types of gurus in the financial markets: market cycle gurus, magic method gurus, and dead gurus. — Anonymous

I have great, great confidence in our capital markets and in our financial institutions. Our financial institutions, banks and investment banks, are strong. Our capital markets are resilient. They're efficient. They're flexible. — Henry Paulson

Reversion to the mean is the iron rule of the financial markets. — John C. Bogle

For me, the real thing is make, serve and list in India. Which means we need manufacturing, we need services, and we need financial markets. — Uday Kotak

One cannot see any world leader who has got a grip on the financial markets these days. They're too big, too fast. I think that's quite scary. — Robert Harris

I had always been interested in markets - specifically, the theory that in financial markets, goods will trade at a fair value only when everyone has access to the same information. — Pierre Omidyar

But in the financial markets, without proper institutional rules, there's the law of the jungle - because there's greed! There's nothing wrong with greed, per se. It's not that people are more greedy now than they were 20 years ago. But greed has to be tempered, first, by fear of losses. So if you bail people out, there's less fear. And second, b prudential regulation and supervision to avoid certain excesses. — Nouriel Roubini

The word power typically signifies a capacity for action. The Oxford English Dictionary tells us power lies in an 'ability to do or effect something or anything, or to act upon a person or thing'. The person who has power may influence the material or social environment, generally on the basis of possessing high-tech weapons, money, oil, superior intelligence or large muscles. In war, I am powerful because I can blow up your city walls or drop bombs on your airfields. In the financial world, I am powerful because I can buy up your shares and invade your markets. In boxing, I am ,ore powerful because my punches outwit and exhaust yours. But in love, this issue appears to depend on a far more passive, negative definition; instead of looking at power as a capacity to do something, one may come to think of it as the capacity to do nothing. — Alain De Botton

One could imagine such technology outsmarting financial markets, out-inventing human researchers, out-manipulating human leaders, and developing weapons we cannot even understand. — Stephen Hawking

Like the effects of industrial pollution and the new system of global financial markets, the AIDS crisis is evidence of a world in which nothing important is regional, local, limited; in which everything that can circulate does, and every problem is, or is destined to become, worldwide. — Susan Sontag

God understands more about the financial markets than many who write about them. — Jean-Claude Juncker

In Germany it is good if as many people as possible join initiatives and peaceful demonstrations against the rule of the financial markets. Worshipping the unfettered freedom of global markets has brought the world to the brink of ruin. We now need social and ecological rules for the market economy. — Sigmar Gabriel

Things like the financial markets - a proper grounding in mathematics could help the common man. I believe that if people are more familiar with mathematical concepts ... it can help deal with modern life, which is increasingly complex. — Viswanathan Anand

The world economy is more stable than for a generation ... Our hugely sophisticated financial markets match funds with ideas better than ever before. — David Cameron

Bullish or bearish are terms used by people who do not engage in practicing uncertainty, like the television commentators, or those who have no experience in handling risk. Alas, investors and businesses are not paid in probabilities; they are paid in dollars. Accordingly, it is not how likely an event is to happen that matters, it is how much is made when it happens that should be the consideration. — Nassim Nicholas Taleb

Making economic policy isn't a popularity contest, especially when financial markets are in a panic. — David Ignatius

The United States has the most sophisticated financial markets in the world, which does not leave much room to maneuver. But it also offers investors the greatest access to information and the ability to execute trades quickly and efficiently. So it is a mixed bag of opportunity. — Andrew Lo

The more Mr. Putin extends the fighting in eastern Ukraine, the more the financial markets will ratchet up their own pressure on Russia. — Roger Altman

The banks, because of mismanagement, because of huge risk taking, are now in very vulnerable positions. We can expect that we're gonna have to do more to shore up the financial system. We also are gonna have to make sure that we set up financial regulations so that not only does this never happen again, but you start having some sort of - trust in how the credit markets work again. — Barack Obama

Business chief executive officers and their boards succumb to the pressures of the financial markets and their fears of takeovers and pour out their energies to produce quarterly earnings - at the expense of building their companies for the long term. — J. Irwin Miller

In the financial markets, hindsight is forever 20/20, but foresight is legally blind. And thus, for most investors, market timing is a practical and emotional impossibility. — Benjamin Graham

Right, we've got these institutions of media, these financial institutions, we have the means of distribution, we have the means of production, we have all these markets and maxims in place. How do we alter the consciousness, the fundamental unifying field? How do we influence change on that level to all of the world? — Russell Brand

Even in financial markets, the concept of market efficiency does not hold. — Paul Ormerod