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> If there was a direct correlation between some metric and stock price, every trade would be automated. 80% of the stock market is controlled by automated tra
by bhupy 6y ago
> If there was a direct correlation between some metric and stock price, every trade would be automated.
80% of the stock market is controlled by automated trading machines: https://www.cnbc.com/2019/06/28/80percent-of-the-stock-market-is-now-on-autopilot.html https://www.cnbc.com/2019/06/28/80percent-of-the-stock-marke...
> Tesla's stock is exhibit A for this.
It's probably not wise to extrapolate the behavior of the entire stock market (literally trillions of dollars in value) just off of one hype-driven anomalous outlier.
- mikkelam 6y ago> 80% of the stock market is controlled by automated trading machines Who programmed the incentives of these machines? Humans. What do they base their actions on? Other robots sure, but also humans
- bhupy 6y agoThe incentives are based on the very metrics that the GP commenter alleged are NOT used to value stocks (P/E, revenue, growth). It’s one thing to argue that the stock market is purely driven by emotion and irrationality. It’s another thing entirely to argue that automation based on P/E, revenue, growth are tantamount to emotion and irrationality.