the market is always wrong, page-7

"If the market "always gets it right" ... then there would BE NO share market!! Think about that for a while!

Let me explain that before Meerkat has little Meerkittens! :)

The very nature of "the market" lives off the fact that "the market" is actually wrong at any given point.

Take BNB as an example, along with BBP & BBI. Not too long ago BNB hits $30 ... brokers, analysts, and shorter say no, "the market has it WRONG" .. it is too expensive, so they sell, or put sell recommendations out. Just when it is getting to "correct value" stop losses are hit, some bright spark at one of the big broker houses actually gets off his bum and recommends (too late by the way) that his clients sell, and down she KEEPS going.

Then Standard & Poor's computers sounds a warning bell: "Danger, danger" so they issue a downgrade credit rating. "Oh crap" says half the Super funds out there, "sell our BNB holdings" ... Now the banks wake up. The low share price has hits their limits and so their loan covenants are triggered. Frantic insider selling now takes place (dont deny it people), followed by panic selling from holders & traders, culminating in the last gasp selling of those small holders who nerves and cash finally give up!!

Has the market got it right? HELL NO .. In come all the traders, smart investors, sharks, and potential suitors. "Bargain of the century" we hear being cried out. And she is on again, only in reverse.

Admit it! We love it! We are hooked on it!

Isn't the market a great place!

If the market actually gets it right, why buy any share at all? They would all just trade in tiny little ranges, and bore us all to death! You would make no money! Better off in ING!

The reality is the market is just about always wrong ... and thats why we all keep coming back.

:)