patrick.net

I find it interesting that so few people understand how deflation affects the stock market. People seem to think that the vast majority of market participants, investors and traders alike, must sell off their holdings for a stock market collapse to occur. Nothing could be further from the truth.

Whether the market is going up or down, the majority of participants are doing absolutely… nothing. Asset prices rise, not because of “buying” per se, but quite simply, because for every buyer there is a seller. Prices rise because those transacting agree that their prices should be higher. All that everyone else need do — whether or not they own the asset — is nothing.

http://www.globaldeflationnews.com/it-only-takes-two-to-tango-everyone-else-can-just-watch/