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A comment on Why is the stock market rallying when the economy is so bad?. Parent comment

Re:Why is the stock market rallying when the economy is so bad? by grey-area on Sunday May 10, 2020 @03:17PM (#23135277)
Stock prices are discounted future profits for about 15 to 20 years. Those profits are still there when Corona is over. From that perspective, why should share prices fall by more than 5-10% for every year that Corona is locking down the economy?

Thats the theory. In practice stock prices wildly oscillate around expected value (which is a gradual curve up and to the right), with no apparent logic. As shiller points out in irrational exuberance, stock markets do not consistently reflect expected long term returns.

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Re:Why is the stock market rallying when the economy is so bad? by koheripbal on Sunday May 10, 2020 @03:41PM (#23135452)
No one makes the claim that short term price changes are rational. They are bets made by humans - very flawed biased humans. ... but if you can be more rational than them, then you can make a lot of money in the long term.

... but I find that most people who complain about irrational markets lack the conviction to bet against it.

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