Set forth below is the text of a comment that I recently posted to the discussion thread for another blog entry at this site:
“When the price that was offered me was too far above the fair price, I walked away. “
Was the type of car you were looking for available at any dealer at a price you though fair?
Yes. That’s because the automobile market is FUNCTIONAL.
A market sets prices by trying different possibilities and seeing which one attracts buyers. If an automobile dealer tried to get away with charging an insane price, he would be put out of business. Buyers would learn that he was offering bad deals and would avoid him.
That’s how I would like things to work in the stock market. If we permitted honest posting re the peer-reviewed research, investors would understand that they need to lighten up on their stock allocation a bit when prices get out of hand. That lightening up would pull prices down until they were again at reasonable levels. So investors would always be able to purchase stocks are good prices.
It is the criminal behavior of you Goons that has brought on the insane CAPE level that applies today. Investors are not exposed to the information they need to make informed stock-buying decisions. So the market has become dysfunctional. A market is an information-transmitting system. When death threats and acts of extortion enter the picture, information cannot be transmitted effectively. So eventually the market collapses and we all suffer the consequences.
We all should want a functional stock market. We all should be speaking up in favor of the idea of opening every large investing site to honest posting re the past 40 years of peer-reviewed research in this field.
My sincere take.
Rob
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