Whitepine,
Yours is a very thoughtful and original post. (As is KB's)
I must be simple-minded because I've read it over carefully a half dozen times and am still intrigued and mildly confused.
<<I also assume that my view of FA, and its limits, is different than yours. Beyond elements of FA, other macro issues affect price changes and these are difficult, if not impossible to quantify. >>
You mention micro/macro factors -such as the trading characteristics of institutional investors. But aren't these factors measured (imperfectly) by TA? Hence the need for us individual investors to apply our intuition and judgment?
<<Thus, because corporations don't pay substantive dividends, there really is no metric about what 'p/e' defines value. Without a root definition of value, why would anyone buy and hold 'paper'?>>
Are you advocating the elimination of the double taxation of dividends? I, of course, agree with that. But then, would that simple change make investment decisions in the real world any easier? Given the emotional factor that affects all investors, individual and institutional, I don't think so.
<<I don't have a synthetic answer about trading or making money.>>
So it all comes down to intuition and judgment?
Bruce |
