Channeling his inner Benjamin Graham (in the ST markets are a voting machine tallying popularity – in the LT markets are a weighing machine assessing substance) Josh Brown wrote this fantastic piece about why stock prices are a proxy about our beliefs about the future.
By definition hope/faith (belief in the absence of evidence) is irrational which is why we should NEVER NEVER NEVER NEVER NEVER assign any meaning to ST prices or market movements.
It’s only in the LT that sane, rational, logical strategies prove their merit.
Happy Memorial Day!
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