[1945]

The market has the capacity to stay irrational. I would not start shorting after a 3-4% pullback..

[lotsofmangos]

I think most people have that saying the wrong way round. 'The market can temporarily look like it is rational', would seem more accurate.

[lmm]

If the market goes "rational" where that was what you were betting on, you make money. You go bankrupt when the market "stays irrational", i.e. the stocks you thought were overpriced stay overpriced.

[jmnicolas]

I think the complete saying is "the market has the capacity to stay irrational longer than you can remain solvent".