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THE DETROIT JEWISH NEWS
Friday, April 2, 1982 39
Is Wall Street Bullish on Bubbie?
move the market. "If in eco-
nomics or other social sci-
ences, it doesn't seem right
to your grandmother, it
probably isn't right," the
Columbia professors con-
clude.
Dean Burton Malkiel of
the 'Yale School of Organ-
ization and management,
doesn't go along with the
bubbie theory but Nobel
Laureate Tobin says the
bubble findings warrant
some explanation. Prof.
Schacter concedes that the
bubbie theory isn't the coni-
VICTOR BIENSTOCK
plete answer and hasn't
mother and particularly - completely disapproved the
any Jewish grandmother idea of market efficiency.
adept at dispensing com- Prof. Hood says that "it's
mon sense as well as chic- our gut feeling that by
ken soup — can refute that studying people, the
theory, two Columbia Uni- economists would improve
versity professors contend." theft' (economic) .models.
Any bubbie worth het salt, Something we know as sci-
itquotes Schacter as declar- entists is that if you start
ing, ,"would intuitively asking questions in a differ-
understand that the ent way than others ask
economists' ideas are silly." them, it isn't long before you
start getting surpriseS."
Nobel Laureate James
As the Wall Street Jour-
Tobin of Yale has not put his nal says: "With plunging
seal of approval on the bub- stock prices turning sweet
bie theory as advanced by investments into sour
Schacter and 'his associate, cream Wall Street pros
-Prof: Donald Hood, an ex- seem to need all the help
pert on visual perception,, they can get. Maybe they
but he did consider the should . talk to - grand-
theory worthy of presenta- mothers, preferably Jewish
tion to a seminar of Yale grandmothers. Although
And special means Kedem. Premium wines from the
economists. Schacter, who thede ladies can't turn the
Classic vineyards of France, Italy, Spain and the U.S.
made the presentation, said market around, they might
the Yale group reacted with at least reassure the Wall
All specially selected for the finesse and character
"intense interest" but also Streeters on another emo-
that lingers happily on your palate. Kosher, of course.
with much skepticism.. -
tional subject. They 'might
New Coalition
Exponents of the random tell the investment advisers
walk theory hold that stock that the random Walk
Ao Encourage
prices, charted over long theory — a.k.a. the efficient
Jewish Artists
periods, move in unpredict- market theory — of the
NEW YORK -- Three able patterns — random stock market should be
organizations of Jewish ar- walks — 'seemingly follow- dropped into the East
KEDEM WINE CO., NEW YORK, N.Y.
tists — in New York, ing the laws of chance, the River."
Philadelphia and San Fran- Wall Street Journal ex-
cisco — have formed a na- plains for the benefit of
tional coalition designed to those whose knowledge of
Best Wishes for a wonderful Holiday Season,
encourage the growth of economics may not be more
filled with joy and gladness and peace!
similar Jewish artist groups than cursory. Their expla-
in cities throughout the nation is that the stock
market is so efficient that it
United States.
Delight your guests,
The coalition will quickly digests any newin-
formation
made
public
ivork clOsely with the
enhance the beauty of
American Jewish_ Congress , about companies, industries
your Seder Table with
which will provide and the general economy.
"In
other
words,"
thetkeory
organizational resources to
assist the formation of holds, "the stock market is
member_ groups in various as random as future events
cities. Regional offices of the and thus, inherently unpre-
AJCongress will also help dictable.."
"But," says Schacter,
artist groups find new out-
lets for performers and ex- "bubbie - knows that
hibits and attempt to de- people 'aren't exactly
velop additional community coldly rational, much
resources for Jewish artists. less efficient about in-
vesting money or any-
Women's- College thing else." In periods of
market turbulence— bull
in Israel Offerg
or bear markets — inves-
Summer Courses tors become passionately
NEW YORK — Michlala, inflamed — euphoric dur-
the Jerusalem College for ing bull markets, glum
'omen, will conduct its during bear markets —
summer program in though they move rela-
two three-week sessions: tively smoothly during
beginning July 4 and Aug. relatively tranquil
periods. But either condi-
1.
.
the prince of juices, fit for a king
Courses will be offered in tion — euphoria or glum-
Jewish studies, computer ness — Schacter argues,
KOSHER FOR PASSOVER
(without special markings)
science, English language "Clouds the mind and
and literature, special edu- tends to interfere with ra-
made under strict Orthodox rabbinical supervision
cation, speech, therapy and tional thought." -
The
bubbie
theory
tends
guidance. Courses will be
METROPOLITAN KASHRUTH COUNCIL,
' accredited in college's and to support the old Wall
of Michigan •,
universities in the U.S. and Street adage that greed and
fear, rather than efficiency,
Canada.
Rabbi Jack Goldman
For information, write
Speak well of every one if
Administrator
Michlala Summer Program, you speak of them at all"—
1350 E. 54th St., Brooklyn, none of us Are so very good.
N.Y. 11234.
—Elbert Hubbard
By VICTOR BIENSTOCK
Kosher wine
needrit be sweet
just special
At long last, the wisdom
and sagacity of the Jewish
grandmother has been
given recognition in the
academic world and the
Wall Street Journal, no less,
has heralded the break-
through.
"Bubbie psychology," the
newspaper reported in a
front page story, "was un-
veiled in a recent academic
address at Columbia by
Stanley Schacter, a profes-
sor of social psychology
i • -1-- ere. As his audience tit-
{ ed, Prof. Schacter ex-
`-piained that bubbie psy-
chology is the study of what
-`2' Jewish grandmothers know
_ without benefit of graduate
training."
Schaeter advanced the
bubbie theory to attack the
widely held economic "ran-
dom walk" theory, also re-
, ferred to as the "efficient
market theory" on forecast-
ing stock prices.
As explained by the
Wall Street Journal, that
theory "argues that fu-
ture prices can't be pre-
dicted, that a Wall Street
p expert is no more likely . to
outsmart.themarket than
is a monkey picking
stocks by throwing darts.
That theory," it notes;
"makes Wall-Streeters go,
ape." , '-
But, "in simple Yiddish,"
the newspaper declares,
"any bubbie — any grand-
KOSHER PASSOVER WINES
HAYI
PEAS APPLE JUICE
.
'
11 th Au rtiJ