Market Irrationality

Discussion in 'Trading' started by IronAndeanCondorSPX, May 28, 2019.

  1. IronAndeanCondorSPX,

    What does Market Irrationality mean?

    Thanks
     
    #11     May 29, 2019
  2. SunTrader

    SunTrader

    Market - exchange of goods or services for other.

    Irrationality - See OP.
     
    #12     May 29, 2019
  3. kmiklas

    kmiklas

    Any Economics teacher worth their salt will tell you that people are irrational.
     
    #13     May 29, 2019
  4. SunTrader

    SunTrader

    I don't know any that are "worth their salt".

    Most especially those employed by The Fed.
     
    #14     May 29, 2019
    kmiklas and IronAndeanCondorSPX like this.
  5. Markets cannot by definition be 'rational' as there'd be no order flow-it is just a bunch of opinions, unlike other commerce- selling cars etc. It's complicated but you can be both right and wrong long and short and make money
     
    #15     Jun 1, 2019
  6. heypa

    heypa

    The market is irrational if it doesn't do what you expect it to do. Good grief. You don't lead the market.IT LEADS !!!! What you know is the recent past. What you are expecting to know is the near future. Put out your sign and go into business, PSYCHIC
     
    #16     Jun 1, 2019
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  7. tommcginnis

    tommcginnis

    No -- and in fact, the opposite. This is the very nature of voluntary exchange, and why trade improves lives. The weaver eats better when they trade blankets to the farmer; the farmer sleeps warmer when he trades pigs to the weaver. The marvel of The Invisible Hand is that, through unfettered prices and voluntary exchange of rational actors, resources move through the market improving utility for all.
     
    #17     Jun 3, 2019
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  8. SunTrader

    SunTrader

    + 1

    It is irrational to think otherwise.
     
    #18     Jun 3, 2019
    tommcginnis likes this.