Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

90% Done is Really 5% Done

This is a syndicated repost courtesy of Slope of Hope. To view original, click here. Reposted with permission.

Only a little earlier this morning, equity markets around the world exploded higher on the news that the I-am-so-sick-of-talking-about-it China/US trade deal was “90% done.”

Liquidity moves markets!

Follow the money. Find the profits! 

Turns out that Treasury Secretary Mnuchin was simply bemoaning the fact that, before talks broke down, the talks were ostensibly 90% done, and gee what a shame it all is. So most of the spike has been unwound.

Let me tell you something about being 90% done by way of an anecdote.

Back in 2004, my company, Prophet, received strong interest in being bought by optionsXpress, our biggest customer at the time. Their CEO, David Kalt, was quite found of ProphetCharts, and literally within 2 minutes of him expressing the desire to “do something more strategic”, he and I had settled up on a price.

So it took virtually no time for us to get 90% done. Hell, we were 99% done. We both wanted the deal, and it made sense.

But it was that final 1% that took literally months. We had a patent portfolio sale which their lawyers didn’t like, and we all tied ourselves up i knots trying to figure out a compromise. Half a year after that initially 2 minute “we want to buy you” conversation, the talks ground to a total halt. We wound up selling ourselves to Investools instead (for the exact same price, and without any damned lawyers bitching about patents).

My point is that 90% isn’t 90%. It’s that first, big, easy chunk that takes a few moments to reach. It isn’t like your gas tank being 90% full. It’s really more like 5%. Because it’s the last chunk that’s really hard and most prone to failure.

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Try Lee Adler's Technical Trader risk free for 90 days! Follow the money. Find the profits!