Its Over, page-22478

You often hear in HC forums when people cite that their stock has fallen even though company wise, nothing has changed, implying the market is irrational and that the fall is unwarranted.

CBA has risen 31% since Oct 2023 lows, nothing has changed too to warrant that positivity - rates remain higher for longer, loan quality is eroding, economy is slowing and loan growth miniscule - yet no one complained that nothing has changed, the stock is rising.

CBA is rising because foreign investors started buying months ago and the hot money flocked to a quality and dependable stock which is not cyclical (well, arguably). When a stock goes higher, it thens to draw more buying from a crowd that follows the price. This 'bull' market is heavily concentrated on the top market cap stocks and here that is happening to CBA getting the fund flow love. Concentration risk I would say.

As for stocks that go lower despite 'nothing changes'- it is holders denial that something is happening that the holder does not want to or pretending not to know. First, either macro or sectoral outlook has worsened, or the company's valuation is excessive for its future outlook and delivery or market has some concerns over its future viability or a forthcoming capital raise or sometimes holders completely ignore the misdeeds or misrepresentations of their company management.