Quote:
Originally Posted by Map Maker
If the markets drop heavily for the next three weeks, it will regain my confidence that the markets are always correct.
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Benjamin Graham once said something to the effect that: in the short term markets are voting machines and in the long term they are weighing machines. This is a widely quoted sentiment.
Now think about that. We live in the short term. We never live in that long term. Today is all we ever have so we are always in that state where the value of the market is just an aggregation of airy-fairy participant votes. Every day in every market is just a confidence game. People saying that no one can predict the future but then proceeding to do just that.