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'it was much better when most stock market decisions were mostly based on "fundamentals"' I don't recall such a period. Is there a particular interval you're
by secretasiandan 15y ago
'it was much better when most stock market decisions were mostly based on "fundamentals"'
I don't recall such a period. Is there a particular interval you're thinking of?
- dave_sullivan 15y agoI've thought there was more opportunity in fundamentals up until Warren Buffet and Ben Graham's the intelligent investor became well known. More people tried to use these methods, thereby increasing demand and decreasing the upside on securities that meet Graham and Buffets criteria. The stock market today is very different from when they got going, although long term I don't know that anything has fundamentally changed, even before robot traders there had always been random and unexplainable noise.
- Symmetry 15y agoWait, if there was more "opportunity in fundamentals" back then it would mean that stocks were further away from their fundamentals, right? That's pretty much the opposite of what the OP is complaining about.
- dave_sullivan 15y agoHa, yes, you're right.
- CWuestefeld 15y agoThis was probably the most insightful thing I've seen all week. Thanks for making me smile.
- danmaz74 15y agoI'm actually not thinking about a specific period, I was just referring (maybe naively) to the time before computer assisted analysis became so widespread (before the eighties, I guess).
- adamtmca 15y agoPeople, not computers, make financial crises. http://en.wikipedia.org/wiki/List_of_economic_crises http://en.wikipedia.org/wiki/List_of_economic_crises