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by outside2344 11 days ago
The market can stay insane longer than you can stay solvent.

In the short term the market is a popularity machine but in the long term it is a weighing machine.

4 comments

You're repeating tired quotes without even understanding what they mean. The quote "longer than you can stay solvent" refers to short selling. Here you are using it in the opposite context: to describe a long position. It makes no sense. How exactly would a non leveraged long position get margin called?
If the scales are only checked after the heat death of the universe, does it even matter?

If the market can’t actually detect crooks and charlatans until long after they have stolen investors money, its ability to be “correct” is worthless.

> If the scales are only checked after the heat death of the universe, does it even matter?

This is the kind of thinking that points to that reckoning moment being close.

This and people buying stock with borrowed money*

> in the long term it is a weighing machine.

This has not been the case for a long time.

What do you suppose is BTC's correct valuation? How about TSLA?

> > in the long term it is a weighing machine.

> This has not been the case for a long time.

I think this comes down to a disagreement about what "long term" means. In finance, I would suggest a _lower_ bound on long term is 10 years. More comfortably, I'd suggest something like 20-30 years. This is long enough to ride out most depressions, and it is still fits within a persons working life-time. It also roughly matches the scale at which people should be planning for retirement and long-term care (imagine if you started your retirement planning just 10 years from retirement, it would be very difficult). So I think neither BTC's not TSLA's hype has reached long-term yet. They have been around long enough to meet some of these timelines, but the excessive hype really hasn't been so long -- maybe 5 years or so.

Can we stop just repeating quotes like those over and over. If you have thoughts, please articulate them, its pretty frustrating to see the same exact quotes repeated over and over whenever there is a submission stock related
That’s like 90% of this site. Roll with it.
It’s not and I won’t
You’re doing pretty good!