> If I had more faith in the market's rationality, I would short them as soon as they IPO...
Total tangent, but how much of the stock market do you think is fair? By fair I mean abiding by SEC regulations (and other obvious laws, such as regular fraud), versus unfair where people are using insider trading, trying to influence a short, or even have some ulterior motive perhaps related to politics?
Now I hope someone more knowledgeable than me chimes in with links to articles or papers, because I'd really love to learn more.
I said that the market might be irrational, not that it might be unfair.
"Irrational" is values that are not based on a reasonable interpretation of the company's financial state and reasonably forseeable future. This is what I think is meant by the saying "The market can stay irrational longer than you can stay solvent."
"Unfair" means corrupt, rigged, or otherwise dishonest. I wasn't suggesting that. But like you, I'd love to see the results if someone can measure it...
Total tangent, but how much of the stock market do you think is fair? By fair I mean abiding by SEC regulations (and other obvious laws, such as regular fraud), versus unfair where people are using insider trading, trying to influence a short, or even have some ulterior motive perhaps related to politics?
Now I hope someone more knowledgeable than me chimes in with links to articles or papers, because I'd really love to learn more.