In general, it is not the fundamentals that matter. It is people's perception of fundamentals that matter.
The Fed has no choice but to raise interest rates and crush the market
- Thread starter Max E.
- Start date
In general, it is not the fundamentals that matter. It is people's perception of fundamentals that matter.
Yeah, I think that applied to 2003-07, IOW, the last iteration of central banking largesse.
I want to stress that the following is in very general terms. I generally agree with you. I think it always applies. The market will most likely keep going up until the majority of the players in the market change their perception of the econ/market.
I think perhaps another valid point about the market in general is that it is designed to go up. For example, where does the majority of 401k money go every month? What are the rules and criteria for various mutual funds to be invested less than x%? Where is the majority of hedge fund money currently? There isn't much alpha to be found on the short side.
I try not to even call it a "market" anymore - that implies it has natural forces of equilibrium and logic. No, this is a casino. Hey, but Shake Shack is worth over a billion $$!