2 ms·

Would you consider it less flawed if it hadn't rebounded after the drop? I thought being able to recover quickly from market shocks was considered a good thing.

mikeash 11y ago
I don't understand your critique. It's a good thing that the market rebounded but how does that make the article better? It's like writing an article about a guy falling out of a plane and how he's going to go splat when he hits the ground, and by the time you hit "publish" the guy has already opened his parachute and landed safely. It's great that he survived but the article is bad!
- logicchains 11y ago
  I wasn't defending the article. The poster I was replying to referred to the market as "flawed", so I suppose I was defending the market?
  - mikeash 11y ago
    Right you are. I think I got mixed up somehow. Just apply my bad parachute analogy to the comment above, then!
Cshelton 11y ago
I am considering it flawed in that we shouldn't have these drops, or gains,...this volatility, like we have today. The high frequency trading, the quarterly outlook, the amount of emotion, etc in the market is flawed. The average person should not have to worry about the market... ever. It shouldn't be the massive, speculative thing that it is today. Short term trading, as it is, needs to stop. Business does not work like that and their stock prices should not either. This is a very surface level explanation, I could write a paper and go on forever. To sum it up, we shouldn't have huge corrections because we shouldn't have 'cheer-leader'ed it up in the first place.
- nostrademons 11y ago
  Why not? The point of a market is that the price signal reflects all publicly available information available at an instant in time. If more information becomes available, or if the information is uncertain and can be interpreted many ways, the price should jump around. That's what makes it an effective market. The average person doesn't have to worry about the market - they can park their money in an index fund, buy when they have spare money, sell when they retire, and forget about the price in the intervening years.
- lmm 11y ago
  > The average person should not have to worry about the market... ever. And they don't. The market, the real-time market, is there for those that need it. If you're not one of those, just ignore it.

mikeash 11y ago

I don't understand your critique. It's a good thing that the market rebounded but how does that make the article better? It's like writing an article about a guy falling out of a plane and how he's going to go splat when he hits the ground, and by the time you hit "publish" the guy has already opened his parachute and landed safely. It's great that he survived but the article is bad!

logicchains 11y ago
I wasn't defending the article. The poster I was replying to referred to the market as "flawed", so I suppose I was defending the market?
- mikeash 11y ago
  Right you are. I think I got mixed up somehow. Just apply my bad parachute analogy to the comment above, then!

Cshelton 11y ago

I am considering it flawed in that we shouldn't have these drops, or gains,...this volatility, like we have today. The high frequency trading, the quarterly outlook, the amount of emotion, etc in the market is flawed. The average person should not have to worry about the market... ever. It shouldn't be the massive, speculative thing that it is today. Short term trading, as it is, needs to stop. Business does not work like that and their stock prices should not either. This is a very surface level explanation, I could write a paper and go on forever. To sum it up, we shouldn't have huge corrections because we shouldn't have 'cheer-leader'ed it up in the first place.

nostrademons 11y ago
Why not? The point of a market is that the price signal reflects all publicly available information available at an instant in time. If more information becomes available, or if the information is uncertain and can be interpreted many ways, the price should jump around. That's what makes it an effective market. The average person doesn't have to worry about the market - they can park their money in an index fund, buy when they have spare money, sell when they retire, and forget about the price in the intervening years.
lmm 11y ago
> The average person should not have to worry about the market... ever. And they don't. The market, the real-time market, is there for those that need it. If you're not one of those, just ignore it.