If markets are efficient… and it’s all about price discovery.
Then if it’s the price of Pizza, or the price of a stock. Price discovery should be the same…. It should be efficient.
Regardless of short selling.
I have to be right, if markets are efficient, short selling shouldn’t matter.
the difference should be speed of price discovery. Right?
Thursday, September 18, 2008
My question to fast money.
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3 comments:
I agree. But what effect does the uptick rule have in speed of price discovery?
In the end it's about earnings and that will determine the price of a stock.
Ben Graham: In the short run, the stock market is a voting machine, in the long run it's a weighing machine.
The uptick should slow the volitiility too..
What they need is a 10 Uptick rule.
that would reduce volitility too.
you asked about cd rates.
it's hard to draw a long term conclusion from one day of rates.
It's obvious risk is being repriced. people want more money for thier risk, for bank deposits, for cd's for money markets... etc.
people are realizing there is no such thing as no risk.
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