“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” Short term movements are very much sentiment driven, both hum

“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” Short term movements are very much sentiment driven, both humans and algorithms. Long term movements generally trend towards the consensus of fair value of any given security, which is usually modelled somehow. You can see stocks where the models struggle to reach consensus by their long term volatility.