Markets will always make mistakes—this perspective relates to market failure and inefficiency
But in the long run, markets will always return to rationality Prices will return to a reasonable range Then they will move in another irrational direction And then they will revert again
This is the pendulum theory
—Back to the beginning Each "mistake" in the market for traders and investors is both a risk and an opportunity The key is to understand what you need to do and where the market currently stands — GN
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Markets will always make mistakes—this perspective relates to market failure and inefficiency
But in the long run, markets will always return to rationality
Prices will return to a reasonable range
Then they will move in another irrational direction
And then they will revert again
This is the pendulum theory
—Back to the beginning
Each "mistake" in the market for traders and investors is both a risk and an opportunity
The key is to understand what you need to do and where the market currently stands
—
GN