3 ms·
> I feel like the stock market is pretty divorced from fundamentals at this point i.e. speculation makes it more like a Keynesian beauty contest (picking stocks
by throw0101a 1y ago
> I feel like the stock market is pretty divorced from fundamentals at this point i.e. speculation makes it more like a Keynesian beauty contest (picking stocks you think other people will think are valuable).
Momentum investing is a thing:
* https://www.investopedia.com/terms/m/momentum.asp https://www.investopedia.com/terms/m/momentum.asp
* https://en.wikipedia.org/wiki/Momentum_investing https://en.wikipedia.org/wiki/Momentum_investing
A number of people make / made money when The Market became "divorced from fundamentals": see The Big Short.
* https://en.wikipedia.org/wiki/The_Big_Short_(film) https://en.wikipedia.org/wiki/The_Big_Short_(film)
Just remember: "The market remain irrational longer than you can remain solvent." — Keynes, https://www.goodreads.com/quotes/603621 https://www.goodreads.com/quotes/603621
- janalsncm 1y agoA big part of that movie was Christian Bale’s character betting on a crash, and almost bankrupting his company because the market stayed irrational long enough. Other people probably made the same bet but ran out of time. You have to be right and lucky.