People buy into a rally because they don't want to miss out, they expect it to keep on rallying. It's herding behaviour, and leads to so-called dead-cat bounces

People buy into a rally because they don't want to miss out, they expect it to keep on rallying. It's herding behaviour, and leads to so-called dead-cat bounces. At least in the short term, there's no reason to expect any intelligent price discovery from the markets. Come back in six to twelve months and then we will see.