The stock markets for the past 3 weeks has been just fascinating. And by fascinating, I mean quite crazy and on most days, quite painful.
I studied Finance at Rutgers, and we learned a lot about how “efficient” the markets were. How all available and whispered about information is efficiently synthesized by the vast army of buyers and sellers which leaves the price at the perfect spot balancing all available information.
I’ve always thought this theory was total crap. And now, with a few more years away from coursework, I definitely think this is all crap.
Based on my 10-year investment (I’ve proven stunningly successful at losing money) career, and on the past few weeks, I’ve concluded that the market tries to find equilibrium between two things:
That’s it. These wild fluctuations sealed the deal for me. Today, apparently, everyone is greedy.
5/13/13 – Duh. I wrote a totally obvious thought and pretended it was insight.