Jul. 29 at 8:24 AM
$FTCI
The market is wrong almost daily in the short term, but rarely wrong over the long term.
In hours, days, or months, prices are driven by investor psychology, fear, greed, and liquidity shocks rather than fundamental value. This noise creates frequent mispricings, bubbles, and panic crashes.
Over years or decades, however, short-term emotional noise cancels out. Market valuations strongly mean-revert to reflect real economic fundamentals, such as corporate earnings, cash flows, and interest rates.
While short-term market errors happen constantly, profiting from them remains difficult. Mispriced assets can stay irrational longer than traders can stay solvent, and high volatility or transaction costs often make short-term arbitrage risky and expensive.
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