Why is the market so stupid and wrong most of the time?

Jachyra · Mar 30, 2009

Quote from Cutten:

Look at the share prices of financials, real estate firms, and auto companies over the last 2 years. It was so obvious they were worth diddly squat and yet the market kept pricing them at ludicrous levels for 2 whole years. Even now when it's obvious most are worthless, at least in the equity, they still trade at billion or ten billion market caps.

Same happened with dotcoms.
Why is the market so stupid and blind to what is obvious right in front of its face?

The market is never wrong... it always shows the exact price at any given point in time where at least 1 buyer and at least 1 seller agree to transact business.

The idea that the market "should" be trading at any given price is a misguided notion and is tantamount to complaining that your scale doesn't work properly just because you don't like how much it says you weigh.

riskfreetrading · Mar 30, 2009

Quote from Cutten:

Why is the market so stupid and blind to what is obvious right in front of its face?

if she is stupid, you should be able to win easily.

if you do not win, what should say about your intellect?

riskfreetrading · Mar 30, 2009

Quote from Lucrum:

Do I detect the frustration of a losing trade or day?

Actually it is a year (if not years) for majority of people.

tmarket · Mar 30, 2009

Quote from Cutten:

Why is the market so stupid and blind to what is obvious right in front of its face?

Market is not stupid because it knows you can't short from zero.

Expired · Mar 30, 2009

C'mon guys... He just needs someone to caress his bruised ego. (Otherwise why would he disappeared even when his thread reach 3 page already?)

trendlover · Mar 30, 2009

I think Cutten just ask that question for fun.

He knows the people bet wrong, not the market.

nutmeg · Mar 30, 2009

Quote from trendlover:

I think Cutten just ask that question for fun. He knows the people bet wrong, not the market.

It's a pop quiz for the Graham crackers.

"In the short run the market is a voting machine. In the long run it's a weighing machine."

trendlover · Mar 30, 2009

Quote from nutmeg:

It's a pop quiz for the Graham crackers.

"In the short run the market is a voting machine. In the long run it's a weighing machine."

http://www.gbpfunds.com/letters/pdfs/3q07.pdf

No more buy and hold nutmeg.

ivanbaj · Mar 30, 2009

Quote from Cutten:

Look at the share prices of financials, real estate firms, and auto companies over the last 2 years. It was so obvious they were worth diddly squat and yet the market kept pricing them at ludicrous levels for 2 whole years. Even now when it's obvious most are worthless, at least in the equity, they still trade at billion or ten billion market caps.

Same happened with dotcoms.

Why is the market so stupid and blind to what is obvious right in front of its face?

Because, what we think is the face is actually its ass.

We are dealing with business end guys.

Rabbitone · Mar 31, 2009

Quote from Cutten:

Look at the share prices of financials, real estate firms, and auto companies over the last 2 years. It was so obvious they were worth diddly squat and yet the market kept pricing them at ludicrous levels for 2 whole years. Even now when it's obvious most are worthless, at least in the equity, they still trade at billion or ten billion market caps.

Same happened with dotcoms.

Why is the market so stupid and blind to what is obvious right in front of its face?

You are the mediaâs mushroom. They keep you in the dark and shovel only the shit that they think you need to hear. Until you think for yourself you will be at their mercy.