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Posts Tagged ‘bull’

Here’s a popular S-Curve about market emotions:

The idea behind this graph is to implement “contrarian investing” or betting against the crowd. The markets, being an expression of investor emotions, have a tendency to overshoot the underlying economics that they are supposed to represent.

However, especially with the markets roiling nowadays on large bank failures and market uncertainty, very rarely do we see stock prices reflect the smooth S-curve depicted above. In reality, the curves are choppy and unpredictable.

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