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Politics : Formerly About Applied Materials
AMAT 226.05+1.3%Nov 14 9:30 AM EST

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To: John Trader who wrote (49093)7/12/2001 7:43:02 AM
From: Proud_Infidel  Read Replies (2) of 70976
 
John,

This thing is real hard to figure out,

I think your first two paragraphs hit the nail on the head. The market is not always right, as is the common saying. Learning to see these market overreactions is the only way to outdistance oneself from the pack. What we are now seeing is "investors," for lack of a better word, not wanting to be in any equity regardless of what is happening with monetary policy etc. This is the exact opposite of what we witnessed 18 months ago, and yet everyone is now feeling a common type of despair, much the same as most were feeling jubilant 18 months ago. This is quite an odd type of behavior, to be influenced so greatly simply because others are, yet it is what makes the market. Saying "the market is always right" makes an assumption that human judgement is always right as a large population, since humans are what make the market. This is clearly not so.

BK
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