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The market is the inefficiency, not the stock. In order to exploit these iniffeciencies, you need to decouple the fundamentals of the underlying company with th
by steveplace 18y ago
The market is the inefficiency, not the stock. In order to exploit these iniffeciencies, you need to decouple the fundamentals of the underlying company with the fundamentals of the market. The price at which a financial instrument trades is simply the sum of the market supply and demand. That's the big secret. If supply runs out and demand is still there, the price will go up until someone is willing to supply more stock.
- byrneseyeview 18y agoThat's true, but it sounds like you're talking more about speculation (guessing prices irrespective of values) rather than investing (purchasing when the price does not reflect full value).