Wednesday, August 19, 2015

8/19/15 Price vs Value

Fundamental valuations are right twice, like a broken clock is right twice a day.  When technicals price something too low then on the way back up the price crosses the true value of that something.  Then back on the way down the price crosses the true value of that something once again.


Who cares whether the Chinese RMB is overvalued or undervalued.  Its price is all that matters and how it affects things at the price.  Expectations will move the price of currencies more than what the prices is supposed to be.  It is a guessing game by more and less informed players.


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