
Investing "Gangnam Style" - khmel
http://www.economist.com/blogs/banyan/2012/10/investing-gangnam-style?fsrc=scn/fb/wl/bl/bubblypop
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khmel
this is example of Halo effect when our judgments of a person’s character can
be influenced by our overall impression of him or her. Investors think that
father's company will work well because of son's popularity

~~~
sgentle
Although let's not forget that investing in a public company doesn't
necessarily mean you think the company will do well, just that you'll be able
to sell your shares for more than they cost.

The people who predicted this effect and got in early may, in fact, be acting
completely rationally.

~~~
khmel
those were very clever people who understand behavioral economics

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Zenst
Well, least PSY's dad can say he sold a chip of the old block.

Either way at least some good has come out of a pop song.

~~~
mseebach
Huh? So millions of people having fun with a catchy tune isn't "good" - but
retail investors piling ~$100b of other people's money into a clearly
massively overpriced stock because of a pop song _is_ "good"?

<http://uk.finance.yahoo.com/echarts?s=003160.KS>

~~~
jonnathanson
_"retail investors piling ~$100b of other people's money"_

Retail investors invest their own money, which, typically, isn't too
substantial per investor. "Retail investor" is really just a finance-industry
euphemism for mom 'n pop with a Charles Schwab account.

This is opposed to "institutional investors," which are big pension funds,
trusts, and other mega-monied organizations. Or to "HNWIs (high net-worth
individuals)," which is precisely what it sounds like: folks with millions of
dollars of liquid capital, usually managed by private wealth management arms
of investment banks or hedge funds. Both institutionals and HNWIs are
perceived to be savvier than retail investors, both by the law and by the
industry.

I'd actually be a lot more frightened if the _latter_ two categories of
investors were piling money into this company, solely on the basis of Psy's
song.

~~~
mseebach
I stand corrected, I had the institutional and retail kinds mixed up. I still
don't think it's "good", though :)

~~~
jonnathanson
I agree with you. It's silly at best, and perhaps dangerous at worst.

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andyjsong
The real question is, how does one short South Korean financial instruments?
DI is going to crater as soon as Gangnam Style falls by the wayside. I give it
another 2 months. It still hasn't hit South America.

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nancyhua
Further proof that Asians are crazy.

[edit] It's a joke, I am Asian. I guess I also watched that stupid video and
like to play with financial instruments.

~~~
gadders
I listened to that song last night so I would know what the meme was all
about.

It is like ear-crack, and I don't even speak Korean.

~~~
DeepDuh
I agree. I'm usually one of those 'snobby' music listeners who despises pop,
but that one is actually really good, especially the video is very well done
with lots of little visual jokes (what with the beach image resolving in a
children's playground and the toilet zoom).

~~~
gadders
When I had just seen pictures of the guy, I thought "What a tool".

Now I've watched the video and realised it's a pastiche, I think it's
hilarious :-)

