The stock market is inefficient. Period!
People buy & sell in the stock mkt daily.
These people have their own underlying biases & perhaps flawed thought processes which makes them take those buy sell decisions
When a trade is exchanged betwn an inexperienced & a smart
1/n
People buy & sell in the stock mkt daily.
These people have their own underlying biases & perhaps flawed thought processes which makes them take those buy sell decisions
When a trade is exchanged betwn an inexperienced & a smart
1/n
Investor, it transfers money frm one pocket to another
But when 2 idiots make up d entire mkt while d experienced hands sit by d sidelines, what do u call tht situation exactly ?
The madness of crowds.
2/n
But when 2 idiots make up d entire mkt while d experienced hands sit by d sidelines, what do u call tht situation exactly ?
The madness of crowds.
2/n
In the short run it's the collective decision making of the crowd that drives prices.
And most analysts (sell side or buy side) spin their logic / story around those prevailing prices.
It takes sheer guts to take d 'contrarian' route
3/n
And most analysts (sell side or buy side) spin their logic / story around those prevailing prices.
It takes sheer guts to take d 'contrarian' route
3/n
More so when the ever increasing 'floating capital' chases momentum which ever way the wind blows at speeds previously unknown
Hence Stock Markets are inefficient.
They reflect for a large part, the worst of the human psyche:
Greed & Fear
~Fin~
Hence Stock Markets are inefficient.
They reflect for a large part, the worst of the human psyche:
Greed & Fear
~Fin~
