Sometimes I see very bright people, people with advanced degrees and or accomplished careers, just cringe at the idea of “how” markets work. The simplicity of an auction, what really is happening, doesn’t register with them. They seem to think more about it then they should. It becomes overly complicated in their minds. A great way to show and explain stock and futures markets? The Tsukiji fish market in Japan:
The Tokyo Metropolitan Central Wholesale Market, commonly known as Tsukiji fish market is the biggest wholesale fish and seafood market in the world and also one of the largest wholesale food markets of any kind.
I had the opportunity to view and film the exchange for the first time this week. If you get the chance, deal with the jet lag when in Tokyo, haul yourself out of bed at 5am and check this market it out. It is truly a unique experience.