Market is _never_ rational. If market followed rational logic, you could pre-calculate which stocks will be what price and never lose money.
reply(Stock) market is, by definition, irrational. If you are scared of solvency, sell and hold money and/or gold.
> If market followed rational logic, you could pre-calculate which stocks will be what price and never lose money.
replyThe fundamentals are unpredictable, so even a perfectly rational planning (suppose such thing could exist) would lose money sometimes. Not in the long run, but long run doesn't matter if a single wrecked ship can wreck you.
"(Stock) market is, by definition, irrational"
replyI assume this is just your definition?
Is weather irrational, because you cannot calculate it?
Markets and weather are just too complex with too many unknowns to calculate it.