3 ms·
What bs. And how do people think a stock is worth? There is no logic in that?
by what_ever 3y ago
What bs. And how do people think a stock is worth? There is no logic in that?
- slt2021 3y agomomentum investors (or hype investors, of which there are many) don't care about the current price, as long as chart is going up and to the right
- thunky 3y agoThere is some intrinsic value in a stock, but since it is based on future unknown values it's impossible to know or predict. So yes, that makes it possible for the price to become disconnected from any reasonable prediction.
- deleted 3y ago[deleted]
- slt2021 3y agothere is also a secondary market for options - where investors trade volatility, and use stock as instrument to trade volatility and express their view. if volatility is priced at a bargain, investors doesnt care much about the stock, as he will be hedging his delta exposure anyways by means of dynamic hedging/etc