As I said before, the market bets on the Future not the Present.
I used to think that too, but I’m not so sure anymore.
I don’t think funds have the patience to learn to understand companies anymore, so that future potential is never identified. Instead they just all apply the same methodology on a company by pumping it, then shorting it hard in an effort to remove as much money from retail as physically possible. They all do this and it becomes a self fulfilling prophecy. It’s lazy but it works.
Let retail plant the seed, then water it aggressively and apply light, as soon as it shoots, harvest it prematurely, ripping out the roots in the process.
Take BRN, all the potential in the world:
- huge future market reach;
- actual product;
- industry validation;
- and a share price lower than it was before they even had a product.
Funds have done this. They aggressively raised the price off the back of Mercedes, and have aggressively lowered us back down again. Using as many dirty tactics along the way as possible.
Markets are no longer a sophisticated investment mechanism to fund future industry. They’re a shit show full of manipulation aided by shorting.
Market fairness no longer exists.
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