Why should future return of a (stock/crypto currency/fx pair) always be the same as their past returns? When the investors comes to believe that (stock/crypto currency/fx pair) is guaranteed to make money in long run, won't the market end up being wildly overpriced? and once that happens how can future returns possibly be high?
I don't understand the question, but yes according to my humble opinion, the market usually overprices stocks.
Wave-Expert
⋅
@hamidious, The question is simple: many trading speculators who call them selves "professional" will always say go with the trend and trend is your friend. For example, if you go with a up trend which is dangerously high aren't you buying a stock at very a high price? That's a very stupid mistake someone can make as you should buy when something is cheap and sell it when the sale price is high. It's simple common sense but very fewer people actually use it.