I just opened up an email account I keep for subscribing to various bits and pieces that I dont want cluttering up my inbox to be greeted by the ASX Investor Update which is always good for a giggle. The feature story in this one is – Shares Look Cheap.
My immediate response was well they are certainly friggen cheaper today than when the story was written. Cheap is a personal bias statement that is not reflective in the reality of the market. The question I always have is how are you going to convince the market of the righteousness of your point of view. In my experience the market doesn’t really care about what an individuals perceptions of value are – all that matters is the markets opinion and that opinion is reflected in the price action. Over a longer term this price action is shown as a trend.
