Percentages

[Frodo]

Don't look at them.........you can't spend them.

Eg. Market down 5%.

but that's 5% of today, 2.5% of last November.

interest rates go from 4% to 5%. An increase of 1%? No, an increase of 25%.

interest rates drop from 5% to 4%. A decrease of 1%? No, a decrease of 20%.

Get the drift? Percentages are tools of spin. rely on stuff you can spend.

 

[Scotland]

Stay tuned, next week is fractions and decimals.

 

[Traces of Nuts]

I don't have a problem with the examples given, more the media's misuse of them to try to create a story out of nothing. And the negative sentiment / behaviour this creates.

Eg: Headline "Slowdown in China is going to **** us all so go out and sell your share portfolio"
Fact: Growth rate in China to go from 9% to 7%.
Reality: Growth still bloody high, just not as high as last year so don't bloody panic.

Heaadline: "Property market in dire slump"
Fact: Growh rate down from 10% to 2%.
Reality: Prices still went up 2%. Just not as much as last year so no need to sell the bloody kitchen sink.

 

[FunkyFreo2]

Rio TInto down 40% is a percentage worth noting perhaps?

 

[Frodo]

Rio TInto down 40% is a percentage worth noting perhaps?

40% of what?

If you just sold them at a 40% loss, fair enough.

If, like myself, you are still 50% up in 4 years then what do percentages mean?

 

[FunkyFreo2]

40% of what?

If you just sold them at a 40% loss, fair enough.

If, like myself, you are still 50% up in 4 years then what do percentages mean?

that you should have sold 7 months ago

 

[dmc333]

40% of what?

If you just sold them at a 40% loss, fair enough.

If, like myself, you are still 50% up in 4 years then what do percentages mean?

That you've been reaping some healthy dividends and a good profit.