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> Unfortunately "fundamental value" doesn't mean shit in a popularity contest where you have a lot of retail money investing in whatever they happen to like. T
by ng12 9y ago
> Unfortunately "fundamental value" doesn't mean shit in a popularity contest where you have a lot of retail money investing in whatever they happen to like.
The stock market is fundamentally not meant to be an algorithm mapping company statistics to valuation. Treating it as such is nonsensical.
- tcoppi 9y agoNot sure why you're being downvoted, I don't think you are wrong. Possibly the misunderstanding comes from a slight technicality - markets exist because buyers and sellers like a convenient place to trade. When buyers and sellers convene they arrive at a market clearing price, which is by definition the value of a company at that time. But finding that value is not the purpose of a market, and the fact that there are many varying opinions as to what the value of a company at any given time should be is what makes a market in the first place.