3 ms·
> If the stock market is wrong, what will force it to correct? How about not "correcting" the corrections in the first place? Let the market actually be a mark
by lordnacho 7y ago
> If the stock market is wrong, what will force it to correct?
How about not "correcting" the corrections in the first place? Let the market actually be a market, don't inject huge amounts of money into it?
Not to be confused with helping out ordinary people who need money for spending.
- FartyMcFarter 7y agoBy correct I meant to go to the "correct" value. The premise was that the stock market is overvalued (is this premise true? I don't know).
- TheOtherHobbes 7y agoActually the premise is "the market is overvalued and therefore there will be a significant correction." Technically the current value is the correct value. The question isn't whether this value is "wrong" - it isn't, by definition - but whether or not Mr Market is delusional and prices will crash at some point in the near/mid future. Explicitly, the distinction is between investors who are looking at fundamentals, and investors who are looking at market momentum and trying to factor in their guesses about politics and Fed policy. If you consider fundamentals, P/E is up to insane levels in a barely functioning economy. If you consider politics - optimism may be justified. Possibly. But if it is - what does that say about the value stock markets are supposed to provide?