Folks, what we are witnessing today is a glaring example of just how illogical and irrational the stock market can be. Some like to believe and opine that the market is "efficient". Sometimes it is, but quite often it is quite inefficient. This contributes to volatility in the absence of factual changes in fundamentals either in the micro or macro. Eventually the market usually gets it right, but it oftentimes takes a while. The market can also be quite illogical and irrational, which can sometimes panic usually very rational shareholders into making self-defeating emotional decisions. I hope none of us is doing that today. The stop losses are being run which is exacerbating the sell-off today, especially after the stock broke through support. The two relatively new pretenders on the scene, SAVA and ANVS, have disappointed "investors" with questionable data. So, like the proverbial baby in the bathwater, AVXL is being sold off in some ridiculous sympathetic and emotional reaction. If anything, AVXL might ought to be going UP today, as smarter money might look to switch from questionable data to a company that has repeatedly provided more encouraging data.
I have invested in stocks for over 35 years. I have seen many examples of "the market" exhibiting emotional and illogical overreactivity to minor events, both micro and macro. This action today is one of the most dramatic and absurd examples of this behavior I have ever seen. FWIW, I have taken the opportunity to add to my position. I hope all of us longs are hanging tough.
