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0 pointsorangepurple2y ago0 comments

Stocks crash on bad earnings reports because the future attractiveness of the stock has diminished. This reduces the likelihood that a future investor will buy your hot potato above the unit price they bought in.

Stocks are fundamentally divorced from economic reality EXCEPT when a company ceases trading and several other rare administrative actions.

Predicting future hype is all that matters. Or time spent fractionally invested in all broader casino hype trains, e.g. VTI

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iraqmtpizza2y ago· 2 in thread

Why in the motherfuck would it be a bad earnings report when, according to this conspiracy theory, gross margins on food would have gone from 1% to 43%? Conservatively that would lead to a ten thousand percent increase in the stock price. Yet instead the stocks of Metro AG and SPAR Group, Inc. are down 25 or more percent YTD.

orangepurpleOP2y ago

What is your point? I'm saying that stock markets are driven by perceived future value rather than some economic reality.

iraqmtpizza2y ago

earnings is economic reality and it directly, materially affects the long-term value proposition of the equity. you didn't know that?

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