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I do not know the answers to your questions. Why did the chicken...

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    I do not know the answers to your questions.

    Why did the chicken cross the road? Ask the chicken?

    The point is that my not knowing does not necessarily mean that the answers are bad.
    Of course they could be bad, and sometimes the answers will be bad. But that does not predetermine that the next set of answers must also be bad. Thinking they have to be is the essence of paranoia.
    Like many things, bad things happening often gives rise to negative expectations that more bad things are more likely to happen. But there is also likely to be a misperception and presumption of correlation with causation. Your questions presuppose that there must be some particular causation between those events, not just an incidental correlation. For instance, if I see the SP fall and I sell it down it may be more to do with my need for underperforming cash to spend elsewhere than because I have reason to believe the price will fall more. The falling SP has not caused me to sell, but I have taken it into account when I made a decision. But if you are watching me and I sell what to you seems like a big parcel you are likely to think that I have acted knowledgeably and solely on the price, (the falling SP caused me to sell), because you don't know what else is going on in my head. If you think I know something you don't know you will second guess my reasons based more on your own inner perspective than mine.
    Gut feeling, which can often be what paranoia can seem to be, is not always right, even though it sometimes is. When the market only acts on gut feeling rather than more substantial facts, then the market acts like a bunch of reef fish, jumping and turning at every shadow, including their own. It is based on that reality that contrarians often do better than uninformed followers of charts who have not researched the business.

    So, what has the chicken said? If you don't like her answer or don't believe you can trust the chicken you are not invested in the right stock.
    Last edited by BobF: 21/09/20
 
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