3 ms·
Because if you withdraw your demand for predictable reasons, other market actors say "Oh a predictably underpriced asset" and bid it back up to almost exactly t
by Eliezer 11y ago
Because if you withdraw your demand for predictable reasons, other market actors say "Oh a predictably underpriced asset" and bid it back up to almost exactly the same price as before.
- gjm11 11y agoAlmost exactly. And, more to the point: the "predictable reasons" involve predicting how many people will be unwilling to hold the assets because of the evil. The more people who are thus unwilling, the higher the predictions will be in future and the lower the price of the asset will go. Your choice whether to hold the assets affects the prediction.