During election campaigns, pollsters call people asking how they’ll vote. Of course, well-designed polls have predictive value, which is why politicians pay for them. They represent what a multitude of people have in common. And when elections are held, the power to vote is considered the ultimate weapon in any functioning democracy.
The belief is that the voice of people is the voice of God. In a very interesting way, financial markets run similarly complete with a two-party system—bulls and bears, with a silent group of undecideds who may throw their weight to either party. And just like the final tally in an election, the market price represents the consensus of value of all market participants expressed in action at the moment of the trade.
