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That doesn't follow. If people expected the markets to be back up in two years, they wouldn't be this low right now. Just because the pandemic ends doesn't mea
by comicjk 7y ago
That doesn't follow. If people expected the markets to be back up in two years, they wouldn't be this low right now.
Just because the pandemic ends doesn't mean the value of companies returns - some will have shrunk, some will have failed.
- zaat 7y agoDoes it still make sense to talk about what people expects when discussing the markets? isn't the vast majority of the action these days is coming from algorithms that try to predict the very very near future?
- AznHisoka 7y agoFurthermore, parent is assuming investors are rational. In an environment like the current, when ppl see their portfolio drop 10% in a single day and worry about their lives, they aren’t making rational pros vs cons decisions. They aren’t calculating future value. They are panicking and just do whatever they can to make their lizard brains feel better.