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Why in the hell is any of this even necessary?
Simply: The worst possible thing we can do, as the most prudent class of investors the world has ever known, is to think we can second guess this irrational beast: to think she can ever be rational or that we can fully understand her, […]
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So again: On one hand, the market is rational because it’s a market. Markets do special things. Largely, they dictate prices. The process of dictating prices is generally a knowable thing. I’m in the desert for four days and now a gallon of water is the price I place on my very life. A high […]
When people think of the juxtaposition of words like “rational” and “market”, they often will think of Keynes’ “the market can stay irrational longer than you can stay solvent“ or Greenspan’s “irrational exuberance.” However, the mere discussion of the circumstantial irrationality of the stock market can, so it seems to me, tend to be misleading […]