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by fallingfrog 1335 days ago
Market prices are a reflection of the economy, they are not themselves the economy. Trying to use the reflection to predict the reflection is self referential- even though lots of people do it, which is why the market often behaves like it's huffing paint. I think it's better to base assessments on base reality.

Example: the share price of K-Mart was 134 dollars in 2007. Now it's 15 cents. And people were buying the dip all the way down. Think it will come back?

After all, no company lasts forever. Eventually they all go to zero and are replaced by some other company. That's why buying the dip just because it's a dip is a fool's game.

1 comments

Counterpoint: It was $0.01 a year ago, and now it's $0.15. How's 1400%?
You would need volume to discern that, right?

https://finance.yahoo.com/quote/SHLDQ/

Does not seem that great of a gamble for a few thousand dollar gain at most. Las Vegas seems like it would be more fun.