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Personal Finance | Market optimism is close to an all-time high

Over 72 percent of the current index value is based on future expectations with merely 28 percent explained by reality

August 27, 2020 / 01:43 PM IST
Personal Finance | Market optimism is close to an all-time high

Trying to arrive at the “correct” value for a market or a stock at any point of time is a futile endeavour. The price of a stock and by extension, the level of an index, relies on several subjective parameters, many of which are tenuous expectations of the future. Moreover, small changes in these expectations can cause large changes in the price, making the entire exercise one of perception rather than fact. The dominant role of subjectivity in valuing a...

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