“The Stock Market Works the Same as Every Other Market That Has Ever Existed. Price Discipline Is By Far the Most Important Thing.”

Set forth below is the text of a comment that I recently posted to the discussion thread for another blog entry at this site:

So the market and how it works is the same, in your mind, as 1929?  It doesn’t seem you have much knowledge about his things work.  No wonder you are broke.

Yes, I believe that the stock market works the same as every other market that has ever existed. Price discipline is by far the most important thing. From time to time we forget that that’s the case with the stock market because our Get Rich Quick urge caused us to place great value on the creation of trillions of dollars of irrational exuberance. When that happens, we all pay a terrible price.

I believe that we should permit honest posting re the last 42 years of peer-reviewed research in this field.

Rob