Hi bvw1705,I think we both understand the article a very...

Hi bvw1705,

I think we both understand the article a very different way.

Let us define some terms first so we aviod equivocation (a logical fallacy resulted from ambiguity or uncertainty of meaning in words) so i am using dictionary to define the following:

1-Market: A public place where buyers and sellers make transactions, directly or via intermediaries.
http://www.investorwords.com/2962/market.html

2-Stock market: General term for the organized trading of stocks through exchanges and over-the-counter.
http://www.investorwords.com/4743/stock_market.html

3- Supernatural: Of or relating to existence outside the natural world.
http://www.thefreedictionary.com/supernatural

When i look at the above defintions, i dont see the market as a supernatural entity as you described it.

Now back to the original article. The notion "the market is always right" does not mean that there is a supernatural power determining the prices of shares! its another way of saying "dont fight the market" or "see things as they are, not as you want them to be".

For example, if you need to sell your AJA shares tomorrow for any reason (and you cannot afford to wait any longer), you will HAVE TO sell them in the market, at the price detemined by the MARKET FORCES (not supernatural) which is supply and demand. You will have to obey the price (you have no choice) regardless if you believe that the price reflects the fair value of the share or not, thats why the price is objective and value is subjective. The way you value the share is YOUR porblem!

All the debates on hotcopper is about value (subjective) not about the price. The price is always right because it represent the share's worth in the here and now. We often say "sentimental value" but we never say "sentimental price".

To sum up, understanding that "the market is always right" taught me how to go with flow, and to stop being stubborn and NOT to fight the market by saying this share should not be that cheap ...etc. It helped to see thing the way they are (objective), not the way i want them to be (subjective).