sentiments

John Mynard Keyenes the legendary economist has likenned investing in stock market to choosing the most beautifull lady in the sunday times. in the 1930s times paper used to print photographs of beauty contestants asking readers to choose the most beautifull one. Keynes remarked that the reader should shoose the on who is most likely to be chosen by most of the readers and not the most beautifull one.

similarly in stock market the short term price of a particular security depends on demand and supply of the security, but in the long term the share valuation depends on the current and expected distributable profits of the firm. Economics don’t move the markets – sentiment does. In the long run, economics might move sentiment – might – and in the long run only. Economics don’t move the markets – sentiment does. In the long run, economics might move sentiment – might – and in the long run only.