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A comment on Stocks Are Recovering While the Economy Collapses. Parent comment

Re:Stocks Are Recovering While the Economy Collapses by ur-whale on Friday May 01, 2020 @02:46AM (#23039635)
> Stock markets are also priced according to _expectations

That's the theory.

Markets are in practice:

    . far more irrational than theory admits to, mostly because theory doesn't model feedback loops properly

    . almost always subject to manipulation
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Re:Stocks Are Recovering While the Economy Collapses by pwagland on Friday May 01, 2020 @06:20AM (#23040683)
You are basically saying the same thing. Behavioural economics, in particular, says that expectations are not always rational.

To be more precise, just because people expect that things will improve doesn't mean that they will. However expectations do drive behaviour, whether those expectations are rational or not.

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