Yesterday I just lamented on what to make out of analyst target price when they can just lift APT target price to double what their original estimates.
I seriously think the market is no longer efficient in being able to direct prices based on how news should affect their share prices- and I used the word should. Take CSL as an example, after weeks of underperforming the market , it came to live yesterday putting on $7 in a single session. The irony is that the share price lift happened when 1) Texas is struggling big time with COVID cases skyrocketing there which should suggest that their plasma collection centre would be affected in a large way operationally and 2) the AUD has been going higher, CSL share price depends on a lower dollar because their revenues are primarily USD so a lower AUD would be materially beneficial and conversely likewise. But, it put on $7 in spite of this! Why? Perhaps because some analyst came out to suggest that the CSL share price can go higher.....it is called jawboning.
The market no longer knows how to think because increasingly the market participants responsible for the share price increases are playing the game solely on momentum (and charts, charts are their compendium for momentum).
I get it that fundamentals tend to be glossed over during periods of share market exuberance - but it also underscores the hidden fragility when momentum finally turns for the worse...we will get to that point at some stage.
