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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Mike Buckley who wrote (16878)1/31/2000 10:59:00 PM
From: mauser96  Read Replies (2) of 54805
 
Mike, reading between the lines of your post ' I get the idea that you think the market is mostly efficient most of the time, but becomes inefficient at extremes and times of crisis or panic. If so, its the same as my opinion.
Since the stock market is composed of thousands of stocks, it's not enough to talk about the market as a whole like the academics tend to do. We have to talk about individual stocks, and QCOM is a good example. Almost everybody now agrees that the QCOM*ERICY deal was a seminal event in the QCOM story. If the market was efficient the price would have completed it's climb in seconds. A study of the thread at the time shows that different people reacted in different ways and at different times so delayed the full runup. This wasn't efficient. This also shows that these rare periods of inefficiency are good times to make money.
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