Neither the Moderna nor the Pfizer stocks dropped very dramatically—both had solid upward trends throughout the past month, and the prices are already bouncing back. Investors make mistakes too.
Using the efficient market hypothesis to access what the true price of a security should be doesn’t work. On the other hand the stock price is a good reflection of what Wall Street thinks and that’s what’s important for how capital gets allocated.
I am a strong believer in reading a short-term reaction to news as the stock market’s true opinion about a development, whether or not one believes the underlying price was reasonable.
Do you have a good explanation to Moderna’s market price drop?
Borrow less, invest less, or, as you say in your last line, focus on other ways of making money that don’t require innovation and IP?
Neither the Moderna nor the Pfizer stocks dropped very dramatically—both had solid upward trends throughout the past month, and the prices are already bouncing back. Investors make mistakes too.
1 - it was tiny compared to recent changes
2 - the efficient market hypothesis is quite quite false.
Using the efficient market hypothesis to access what the true price of a security should be doesn’t work. On the other hand the stock price is a good reflection of what Wall Street thinks and that’s what’s important for how capital gets allocated.
I am a strong believer in reading a short-term reaction to news as the stock market’s true opinion about a development, whether or not one believes the underlying price was reasonable.