InvestorsHub Logo
Followers 13
Posts 1546
Boards Moderated 0
Alias Born 06/14/2018

Re: None

Wednesday, 05/24/2023 7:52:28 PM

Wednesday, May 24, 2023 7:52:28 PM

Post# of 34625
As long as I am rambling on, I'll go on. I've been investing in stocks since the 1980's.
I have always thought of an individual stock price as a rubberband.
That rubberband is almost NEVER non stretched and at it's "fair" price (although conventional market wisdom says stocks always find their natural level). That rubberband is almost ALWAYS stretched either too high or too low because of all the varied market influences on it.
Day traders stretch it too high, Short sellers stretch it too low, options buyers and sellers can stretch it either way, greed stretches it too high, fear stretches it too low, good news or a good earnings report breeds enthusiasm and optimism and greed, and the opposite breeds doubt and pessimism and fear.
Discord and other like sites and memes and talking heads on TV all stretch that rubberband one way or the other.
My point is, don't buy when it has a "reason" to be artificially stretched high, and vice versa.
The same rubberband theory also effects and applies to P/E ratios and P/E/G ratios.
It's all in the eye of the beholder.
GO MRKR.
Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
Recent MRKR News