I have read the article and I have to say that I disagree with the premise that the market is always right.
What we call market is really a number of individuals and companies making educated guesses and sometimes acting on the inside information that moves the hither and thither. It is convenient way of describing activity of people buying and selling.
We tend to assign supernatural properties to something that really does not exist in that sense.
It is the people that decide the price not some supernatural entity called market.
If you are the last person who bought or sold the stock you made the price not market, then the next buyer and seller comes along and may change or not the SP. Even if the trading is done by super fast computer, it is executing a program written by people. And people can be wrong and often are.
Sure if more people are buying than selling price tend to rise and we can say market is up. That is just a convenient way of saying SP increased because more people were prepared to pay more money for the stock.
There is really no magic, just multitudes exercising their point of view.
Brian
AJA Price at posting:
$3.55 Sentiment: LT Buy Disclosure: Held
