If by that you mean that valuations are not the result of a rational process, you are correct.
But investment strategy isn't so much about any underlying reality as it is about the psychology of market participants. You don't invest based on what you hope will happen, but what you believe will happen.
If by that you mean that valuations are not the result of a rational process, you are correct.
But investment strategy isn't so much about any underlying reality as it is about the psychology of market participants. You don't invest based on what you hope will happen, but what you believe will happen.