GAC

if:- shares don't trade on fundamentals, they trade on emotion, psychology, fear and greed.  Fundamentals play a role....data points and such can impact sentiment, but there are many other influncers of the psychology of the market than just hard data.

How would you know if emotion, psychology, fear and greed are having an impact if you have no clue of any fundamentals? Why were you continually adding to your pile under $2.50 unless you had an idea of greater value?

There is definitely many reasons that cause investors to make individual buy and sell decisions but fundamentals should clearly be part of that process for investors. Traders on the other may not care less and that's fine too. Investors generally fit into one of three categories, growth, momentum or value and each one uses different weightings in their decision making process, including their partners demeanour. My argument is simply that a gauge is needed to put everything else into context.

Last July Biogen had a market cap increase of about $17 billion over a two or three week period as a result of slowing the progress of Alzheimer's by 31%. That was clearly an emotional run. Anyone who had an idea of the fundamentals may not have owned as much as they had prior to that news if the gauge, showed the fundamentals were really far out of whack. We can only hope for an emotional run like that if we show an RRR of 30% and a 25% increase in cognitive function. That would equal a reversal of the problem, not just slowing its progress.

tada