Why is selling an investment at the market’s highest value point in history irrational? Because it might be at an even higher value point in history later, and by selling you practically ensure that it’ll take longer to reach the next peak?
I don’t think the price being at an all time high was a necessary, intended, or … even explicitly included part of the story I was telling. I picked the price numbers purely for purposes of illustration, by looking up the current price and rounding it—the specific number wasn’t intended to be significant.
The sale is irrational because it’s performed by a cat, who (presumably) has no useful information or analysis about the value of the company and its stock.
If the sale were being undertaken by someone intentionally, on the basis that they think Facebook isn’t worth as much as the current price implies, that would imply the existence of information that the market price should respond to.
Why is selling an investment at the market’s highest value point in history irrational? Because it might be at an even higher value point in history later, and by selling you practically ensure that it’ll take longer to reach the next peak?
(This is a legitimate question, btw—not a bait.)
I don’t think the price being at an all time high was a necessary, intended, or … even explicitly included part of the story I was telling. I picked the price numbers purely for purposes of illustration, by looking up the current price and rounding it—the specific number wasn’t intended to be significant.
The sale is irrational because it’s performed by a cat, who (presumably) has no useful information or analysis about the value of the company and its stock.
If the sale were being undertaken by someone intentionally, on the basis that they think Facebook isn’t worth as much as the current price implies, that would imply the existence of information that the market price should respond to.
oh oh oh oh I get it, I was reading the current story onto the story you were actually telling
thank you!