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> but the fact that so-called "smart money" on Wall Street is still buying into that shit baffles me I will get downvoted for this, but my opinion is this is b
by nielsbot 6mo ago
> but the fact that so-called "smart money" on Wall Street is still buying into that shit baffles me
I will get downvoted for this, but my opinion is this is because the stock market isn’t “real”, it’s just a sentiment consensus machine.
- cosmicgadget 6mo agoI disagree with 'just'. A lot of the money in the market is savings and retirement money that is far removed from sentiment.
- nielsbot 6mo agoBut what about the people who manage those funds' investments? To be clear: I think some of the "sentiment" is from "serious" investors who care about fundamentals.. so there's some pool of people betting against each other based on that... but overall the market isn't necessarily tied to how well a company is doing. It's a casino.
- cosmicgadget 6mo ago> But what about the people who manage those funds' investments? Some combination of trading strategy (to include sentiment but like Fidelity 2045 isn't doing HFT), payola, and buy-and-hold. Possibly with some anti-sentiment hedging. Remember I am not claiming sentiment trading doesn't exist, I am disputing that the market is "just sentiment" - either literally or hyperbolically. > overall the market isn't necessarily tied to how well a company is doing. It's a casino. Lot of daylight between "sometimes hype is a factor" and "it is basically roulette".