Hi, in the short term markets are irrational and a complete arbitrary mess, however in the long term markets are super efficient and reflect almost perfectly the fundamentals of a company, it takes time for markets to react to fundamentals, this is why long term investors can make serious money in the stock market by exploiting these incredible short term opportunities, otherwise if markets were perfect and the stock price reflected fundamentals all the time, and no undervalued stocks existed, then investing would be based on pure chance and it would be like playing in the casino.
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