I’ve posted Entry #107 to my weekly Investing: The New Rules column at the Death by 1,000 Papercuts site. It’s titled Most Explanations of Stock Price Changes Are Tall Tales.
Juicy Excerpt: It shouldn’t be possible for lobbyists to just make up claims that a stock crash was caused by this or that proposal and have serious people buy into the assertion. But that’s how messed-up our understanding of how stock investing works is today. My lobbyist friend was able to get away with such foolishness because none of the “experts” in this field know any better. People believed him because he spoke with confidence. When no one knows what they are talking about, the guy who speaks gibberish with confidence wins the day.