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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.
SNDK 239.51+15.3%Nov 7 9:30 AM EST

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To: Sam who wrote (4590)2/16/2021 1:12:57 PM
From: Art Bechhoefer  Read Replies (1) of 4823
 
Sam,

The study by the Harvard Univ. researchers, like many studies from academe, relies too much on simple explanations and formulae that do not reflect real world conditions. Put another way, economics, in particular, looks for simplistic formulas that can easily be programed into a computer, as if thinking about the real reason a stock goes up or down is no longer necessary.

The stock market is influenced by dozens, if not hundreds of variables that academics often overlook. A simplistic formula for identifying a bubble, as you noted, overlooks a lot of particulars affecting an individual stock, and not necessarily the market as a whole, and vice versa.

I prefer to look at prospects for individual companies, the quality of their management, and the external factors that may influence the market as a whole, before determining whether the companies are in, or about to enter a bubble.

Art
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