To elaborate: The stock market is a “Keynesian beauty contest” where - at least in the short and medium term - what investors think other investors think* about a stock is more important than what it’s actually worth. Reality asserts itself eventually, but “the market can stay irrational longer than you can stay solvent”, so here we are.
To elaborate: The stock market is a “Keynesian beauty contest” where - at least in the short and medium term - what investors think other investors think* about a stock is more important than what it’s actually worth. Reality asserts itself eventually, but “the market can stay irrational longer than you can stay solvent”, so here we are.