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Theory A: [https://www.theory-a.com](https://www.theory-a.com) https://www.theory-a.com](https://www.theory-a.com) Premise: Plotting market cap rather than pri
by notShabu 4y ago
Theory A: [https://www.theory-a.com](https://www.theory-a.com) https://www.theory-a.com](https://www.theory-a.com)
Premise: Plotting market cap rather than price allows fundamentals like earnings & cash flow to be compared against the market valuation on the same Y axis.
The efficient-market "correctly" prices in positive or negative sentiment so this visualizes how much of that sentiment is hyping up or depressing the price.