I agree that once a price has reached equilibrium, it is likely to stay there if the number of traders is large enough. But stability does not imply objectivity. It may be that this equilibrium is an overestimation, as often happens with technological hypes.
There is also no objective value of a stock that would allow us to separate traders into wise and unwise. Every trader is a human with certain experience, skills, investment strategy, available information, cognitive biases that he is unaware of. And the stock value merely represents the sum of all traders’ characteristics.
I agree that once a price has reached equilibrium, it is likely to stay there if the number of traders is large enough. But stability does not imply objectivity. It may be that this equilibrium is an overestimation, as often happens with technological hypes.
There is also no objective value of a stock that would allow us to separate traders into wise and unwise. Every trader is a human with certain experience, skills, investment strategy, available information, cognitive biases that he is unaware of. And the stock value merely represents the sum of all traders’ characteristics.