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Well, at least that is what they teach you in college when you learn about the efficient market hypothesis. In reality, investors are getting less rational ever
by sigmoid10 5mo ago
Well, at least that is what they teach you in college when you learn about the efficient market hypothesis. In reality, investors are getting less rational every year. The modern stock market has become pretty much decoupled from reality.
- red75prime 5mo ago"Everyone is crazy" is a well-measured stance that I can respect. /s On a serious note, if you think that everyone else loses contact with reality, it's a signal to check and recheck your assumptions.
- sigmoid10 5mo agoMaybe check your own knowledge on the topic you're commenting on before talking down on others. Musk for example has famously said himself on several occasions that he thinks Tesla is overvalued. But any company with a >1000x P/E ratio is less screaming "sensible investment" and more "get on the train before it moons" meme-stock. Regardless, none of this is rational anymore. It is mostly hype (and a little bit of insiders rug-pulling each other).
- red75prime 5mo ago"This company is overvalued" and "The market is not rational anymore" are a bit different claims. One of the assumptions I mentioned is "significant overhaul of economy is impossible."