What Does it Mean?

(c) 2008 F. Bruce Abel

When CNBC says "Citi rose 60% yesterday" there are implications and errors embedded therein. For someone who bought and held "C" from 55 down to 2 1/2 the statement is meaningless and irritating. So what that it came back from 2 1/2 to 4 or 6?

The statement does have tremendous "meaning" to someone who got out of the market January 1, 2008 and invested his cash in Citi the day before the "Citi rose 60% yesterday" comment, at 2 1/2.

Another "error:" 60% of 2 1/2 is little, dollar-wise. 60% of 55 is a lot.