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If what you're trying to say is that the market prices tech companies irrationally and people should get over that, then yes I totally agree. A smarter model f
by programminggeek 13y ago
If what you're trying to say is that the market prices tech companies irrationally and people should get over that, then yes I totally agree.
A smarter model for valuing tech companies would look at what their actual worth is, then separately factor in some kind of "bubble factor" or "irrational exuberance" factor that would price in the sentiment of people buying/selling the stock itself.
- jfasi 13y agoAgain, you're missing the point and buying into the myth of the quantitative analyst. Irrationality and emotion are like a balloon: you squeeze on one end by implementing a bubble factor (however you defined that...) and the irrationality comes out on the other end.