> in practice stocks are often pretty disconnected from business realities by algorithmic trading and high-frequency trading If you are an HFT and you are noti

> in practice stocks are often pretty disconnected from business realities by algorithmic trading and high-frequency trading If you are an HFT and you are noticeably impacting the price of a stock, you are losing a ton of money very quickly > mass sales on a company posting a slightly less than stellar quarter on the back of a proven long-term, solid, growing business: is that company really "worth" 10% less today? This is a very easy theory to test. If you think it’s true, just buy every stock that’s down 10% on earnings (it’s obviously not true as such a strategy would have been exploited by hedge funds decades ago)