Market expectations
Stocks don’t do good or bad; they do better or worse. Everything is relative to market expectations.
Category Markets
Extreme valuations
Investing in something just because it is cheap is likely a value trap.Shorting something just because it is expensive is a death wish.
Gravitating towards the rational outcomes
Markets and securities are often overbought or oversold, and they can maintain or extend those conditions for a long time. The outcomes that are more likely to happen may not happen until long after they first became likely. Markets can…