Sentiment and Expectations
Is it true to suggest that the markets are driven by emotions? Well, certainly greed and fear do make a significant contribution to prices in any market context. How can it be that a company with little history and no earnings whatsoever can be valued in the billions of dollars? Does that company have proprietory technology that will change the world as we know it? Does the company have such a convincing marketing and growth strategy that investors are purely valuing the company based on expected gross revenues?
Whatever the case, market sentiment doesn’t necessarily work in a logical way, and sometimes it’s difficult to understand how a company like Coca-Cola or McDonald’s can get panned when delivering consistently ...
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