Bull market theories

Every bull market has a theory behind it. The theory puts across the “reasons for investing in the stockmarket” to the investors. At other times it explains why the market is rightly valued when evidence suggests otherwise. And at still other times when a person or a group of persons are rigging the stockmarket it helps convince the investors to come join the party, so that the markets can go to even greater levels and the scamsters can rake in a quick buck. The theory is used to influence the investor perception of the stockmarket. As Harshad Mehta once remarked, “The crucial thing about stock markets is that it is primarily driven by perceptions, not performance. That’s unlike the commodity markets, which are more performance oriented.”
Source: DNA Money
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