The prices 3 weeks ago were based upon a different set of information than we have now.Nothing is " obvious" when it comes to the markets. If the market corrected itself by 5%, does that mean the highs of the last few weeks were " incorrect" ? And now they are at the correct prices? The market is always wrong. Were the highs of the last few weeks predicated on the idea that interest rates would be coming down soon and now the market realized that is not true- Maybe. Assuming the prices of the past few weeks were correct is forming a reference point based on those prices. Correct reference point? Incorrect reference point You don't know, I don't know, nobody knows. Get used to it , it's the way it is . Thats how markets work.
" In this sense, long term investors must be philosophers rather than technicians" - Jack Bogle
The prices 3 weeks from now will be based upon a different set of information than we have today.
Statistics: Posted by watchnerd — Sun Apr 21, 2024 5:20 pm — Replies 79 — Views 3712