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I agree with his take on the downtrend. But not as surprised or negative about the reason - herding.
Herding is also what makes bull markets with very often a disconnect from underlying reality.
Ever since the capital markets started to attract more money than there are equities to justify the flow, we are in a market determined by what you think others will be willing to pay in the future in a relative sense than what the underlying shares are worth (rationalized by increasing multiples) in an absolute sense. Herding is the natural consequence of that based on current sentiment in either direction.
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Herding is also what makes bull markets with very often a disconnect from underlying reality.
Ever since the capital markets started to attract more money than there are equities to justify the flow, we are in a market determined by what you think others will be willing to pay in the future in a relative sense than what the underlying shares are worth (rationalized by increasing multiples) in an absolute sense. Herding is the natural consequence of that based on current sentiment in either direction.
Yes, I surely agree with that!