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“The market can stay irrational longer than you can stay solvent.” Often attributed to Keynes, though may have originated with Shilling (or been in common use)
by Frqy3 11y ago
“The market can stay irrational longer than you can stay solvent.”
Often attributed to Keynes, though may have originated with Shilling (or been in common use).
- JesperRavn 11y agoIt's just not right. Given the existence of options, shorting is no more bound by liquidity than being long on a stock. Imagine saying "Stock X is great, but the market can undervalue X longer than I can stay solvent"?
- tbrownaw 11y agoThe control against companies staying undervalued for too long is acquisitions. Plus of course, it's possible to buy stocks and hold them long-term without worrying about margin calls forcing you out.