7/29/2024
By Charles Payne CEO & Principal Analyst

“When the price of a stock can be influenced by a ‘herd’ on Wall Street with prices set at the margin by the most emotional person, the greediest person, or the most depressed person, it is hard to argue that the market always prices rationally. Market prices are frequently nonsensical.”

-Warren Buffett, 1984

Undoubtedly, we are amid a herd mentality run amok. Sure, the market was and remains lopsided, but the speed of adjustments underscores a fascination with being among today’s winners at any price, including common sense.

Fundamentals and, to a lesser degree, charts (technical) have mattered far less than the narrative of being the “winner” of the day. It stands to reason that investors who have made big money in high-beta names would like to rotate into other areas of the market that also provide swift, outsized returns.

The problem is that the velocity of these moves is unnatural (think of flying pigs), even when the big movers are undervalued.

To read the full report, contact your account representative or email Info@wstreet.com.

Charles Payne
Wall Street Strategies

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