I am excited to have the opportunity to be a regular contributor to Significance Magazine. Below is the first of what I hope to be many contributions. I hope to see contributions from my talented (and more well written) friend and cancer researcher Ryon Graf soon.
“It would be easy to paint a picture of recovery for these industries based on sales revenues, although there is no indication of a casual relationship between the two. These reports are meant for the average consumer only in a sense to stir up positive sentiment, which in turn spurs more discretionary spending. It is more plausible that these reports are meant for the real stakeholders: shareholders and potential investors. We can surmise that in a world of algorithmic high frequency trading and complex derivatives based on yet other derivatives, that the common equities market does not always correlate to the real-world P&L performance. I recall a former boss’s retort of traditional value investing: ‘The market can stay irrational longer than you can stay solvent’. “