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by WalterBright 535 days ago
On a more long term basis, the stock market reflects the business reality. But in the short term, it's chaos.
2 comments

The former is a belief. It always reflects the imagined realities of those investing--we assume that business reality catches up with them, and it mostly does but not always within a predictable time frame.
> The former is a belief

It's based on the Law of Supply & Demand, which is always in play.

Always in play for goods and services, but this is a crypto currency – it's supply is mathematically limited, and it's value is fully market-dependent – determined only by players on the market.
A huge short term influx of free capital can shape that longterm business reality. Of course both in positive and negative ways