The market is making merry.....at the cost of punters, of course.
We are down from where we stared the year; and it's already 7 months. That means we have only 5 months to recoup. Can we? Of course. Would we? I don't know.
For those who invested for the short-term without understanding how firms operate, businesses function and markets react, it has become tough, I guess. Market inefficiencies galore.
We have seen before: 1) the drunken steps; 2) the 1000-6000 market; 3) what moves the market; 4) falling prey to the numbers. Humans are not rational animals, but rationalizing ones.
The only way we can make money in the stock market is by understanding businesses and their value, and buying them at the right price. Good behavior (control of emotions, in particular) is critical in this process, not extraordinary brilliance.
Financial history is full of highly intelligent people who stumbled along the road.
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