Economic Developments Are Never As Big a Deal As Investment Analysts Make Them Out To Be

The old way of thinking about the stock market is that it is economic developments that cause price changes. Investors change their assessment of what stocks are worth as new information about future economic developments becomes available to them.Q2 2020 hedge fund letters, conferences and moreBut Shiller showed that investors are not entirely rational but at times highly emotional. Irrational exuberance and irrational depression greatly influence their assessments of what stocks are worth. At times like today, when the CAPE value is at two times the fair-price CAPE value, only half of the va…

Read More

HEDGE accordingly