On: Is Now the Time to Buy Stocks?

[peter123]

i think if you invest for the long term (3 yrs or more), a lot of stocks are still undervalued at this point... and they continue to fall as we speak.

[aneesh → peter123]

Which is what confuses me. How can there be a consensus that something is undervalued over a period of time ... wouldn't the markets just correct the price quickly?

[tyn → aneesh]

Markets are not efficient

[aneesh → tyn]

That's one possible explanation.

The other explanation is that investment firm XYZ is wrong when they say that a particular asset is undervalued.