• Brave Little Hitachi Wand@lemmy.world
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    3 months ago

    The market’s chronic convulsive disorder is, imo, an inefficient pricing problem. Price discovery doesn’t really exist, most of the trading volume is “off-exchange” and market makers have severe unchecked moral hazards in how they do business.

    The underlying value of publicly traded companies simply does not change as fast as this. Regardless of what you might say about the speed at which the market reacts to new information. In a world where the media openly and solely serves the interests of billionaires and a small outfit like Wall Street On Parade is routinely censored on socials, there’s no reason to believe anything you’re ever told by the news about any moves in the market.

    • surewhynotlem@lemmy.world
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      3 months ago

      Stock investing isn’t about underlying value. The company itself is almost irrelevant. Stock investing is about predicting stock investor sentiment.

      • Brave Little Hitachi Wand@lemmy.world
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        3 months ago

        That’s not a traditional view of investing or the manner in which securities are built to be valued, but it is admittedly the modal paradigm to which we are subject.

        • barsoap@lemm.ee
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          3 months ago

          Which is why NFTs work. They’re refreshingly honest: They represent nothing of any kind of value, yet are valued. Something something fetishism.