what are they now, page-5

If the last few years have taught us anything, it is that the fundamentals and true value of a stock account for absolutely nothing, if the market is spooked.

Once upon a time, investing in the stockmarket use to be for the long term. This is because it was more difficult to buy and sell shares. There was no Comsec, there was no internet, there was no email. So if you wanted to purchase shares, you had to go to the effort of calling your broker, arranging funds and sorting out the paperwork. It wasn't the type of thing you would do three times a day every day. If you wanted to trade, you had to be on the floor.

The same went for exiting the stock. If you wanted to sell, you would have to call your broker and follow the process. Which took more effort then what it does today.

Now days, we have access to the live market and more efficient ways to trade that allow people to buy and sell faster and cheaper.

So back in the days prior to the internet, there were a lot of investors who would just put there money into a stock and keep it there for a number of years, simply because trading in and out on a daily basis depending on the mood for the day wasn't feasible and because of this there was less variance.

Today, everyone has access to their shares and can buy and sell a stock within a couple of seconds and this is why we will continue to see huge variances in share prices, even if they don't make any sense based on the fundamentals of a stock.

There is a lot of money to be made if you can adjust to the new way.