Hacker Timesnew | past | comments | ask | show | jobs | submitlogin

>Markets are driven more by expectations 6+ months from now

If this was the case then we wouldn't have since the crash due to Covid-19.



during the market crashes we weren't we looking at 100-240k dead in the coming months and that was considered "good"?


My point is that people claim that the market has already priced in the next 6 months. This is not true.


Next 6 months includes a lot of uncertainty in expectations which is, statistically, priced in. Those expectations may have a distribution which might make for a strange average response.

For example, consider a bimodal distribution: 50% +1, 50% -1. The average is zero, but everyone that believes in this distribution believes that zero is highly unlikely. Thus, if there are big benefit for guessing right and little for guessing zero, the actions can rapidly oscillate, seemingly without major external information (just based on whichever of two almost-equally-likely outcomes seems likelier).


Statistically priced in? Huh? I doubt that.




Consider applying for YC's Fall 2026 batch! Applications are open till July 27.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: