And Wall Street is supposed to be a rational market?

Latest Apple stock selloff blamed on misinterpreted story on iPhone sales
[Via AppleInsider]

With shares of Apple stock dropping more than 5.5 percent during trading Wednesday, a handful of potential factors have been blamed, including a misinterpreted news story on iPhone sales. But one analyst believes the losses have created another buying opportunity for prospective investors.

[More]

So essentially misunderstood ‘gossip’ can cause a huge sell off of an already easily manipulated stock.

Why does anyone believe that the market always demonstrates a fair and rational price? Maybe in periods of stasis when things come to reasonable equilibrium.

But in the exponential economy, there is no such thing as stasis and any sort of equilibrium is dynamic and short-lived.

Perhaps we should create better methods.

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