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The market has the capacity to stay irrational. I would not start shorting after a 3-4% pullback..
by 1945 12y ago
The market has the capacity to stay irrational. I would not start shorting after a 3-4% pullback..
- lotsofmangos 12y agoI think most people have that saying the wrong way round. 'The market can temporarily look like it is rational', would seem more accurate.
- lmm 12y agoIf the market goes "rational" where that was what you were betting on, you make money. You go bankrupt when the market "stays irrational", i.e. the stocks you thought were overpriced stay overpriced.
- jmnicolas 12y agoI think the complete saying is "the market has the capacity to stay irrational longer than you can remain solvent".