"They are what their PPS says their are" in other words, you don't believe in inefficient market? You believe that each and every stocks in the market are valued correctly am I right? If so, how do you explain the bubble then? A week before the dot.com bubble bursts, yahoo was trading around 100s, after it bursts, it was trading around 10s. Surely one those valuation was incorrect. This is just one example out of many.
Nothing has changed much about its fundamentals. The only thing that has changed much was the perception of the participants.
If you are going to let the PPS guide you, one day you will find yourself buying when everybody else are buying and selling when everybody else are selling. And we know that's not how you make money here.
This is zero-sum game, the only way to make money here is be on the opposite side of the crowd and be right at the same time. The PPS does not tell much, it only tells you what the majority of people thinks and what everybody thinks can always be misleading.
