Seizing On an Emotion-Driven Market
It would be a bit misleading to say the market never makes mistakes, right? If the market were perfect, we would all be long and making huge amounts of money each day, Facebook (FB) would be at $100 and Apple (AAPL) would be at $1,000. That is clearly not reality for the 99% of us struggling to make a buck each day the market is open.
The truth is, markets are more tied to emotions and reaction than ever before, and in some ways the price discovery has become more efficient as a result. However, there are situations in which the market makes a "mistake" and misunderstands certain stocks or situations -- and punishes a name too harshly. This was the case recently with Eaton (ETN). The industrial company posted some decent numbers while CEO Alexander Cutler came out and said that, going forward, things would be OK in their business....525 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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