Harnessing The Power Of Market Sentiment

In my last article, “How Sentiment Shakes the Market,” we saw that when one buys a share of a company, one is not just paying for whatever net assets the company has but also a premium for the market’s feelings, or sentiments, towards that company. As we saw, a public company is not just a profit machine but also a capitalization machine. Paying “extra” seems unfair but unfortunately it is a fact of life and can only be...