tag:blogger.com,1999:blog-7658874470833994309.post5681441923081011624..comments2023-10-20T10:46:21.208+01:00Comments on Knowing and Making: Tim Harford on perceptions and economic behaviourLeigh Caldwellhttp://www.blogger.com/profile/16150868700502562500noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7658874470833994309.post-58607455638720741182008-12-16T08:40:00.000+00:002008-12-16T08:40:00.000+00:00This whole idea of what prices should have been is...This whole idea of what prices should have been is so lame. Prices are always what they should be.Sameer Agarwalhttps://www.blogger.com/profile/10945252811292623904noreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-52310267610143038832008-12-15T08:39:00.000+00:002008-12-15T08:39:00.000+00:00Hi TonyThanks for the comment. Good point.I suppos...Hi Tony<BR/><BR/>Thanks for the comment. Good point.<BR/><BR/>I suppose my argument is this: undoubtedly prices do overshoot the fundamentals - the "bubble" effect. However, the fundamentals themselves are affected by perceptions. If people believe in continuing growth in demand, they will invest more. This in turn will increase the long-run potential of the economy, and therefore the growth Leigh Caldwellhttps://www.blogger.com/profile/16150868700502562500noreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-72417941768269446902008-12-15T07:54:00.000+00:002008-12-15T07:54:00.000+00:00But is'nt this the same argument as regards the us...But is'nt this the same argument as regards the use of Technical Analysis to make investment decisions - if a significant number of investors decide that the chart shows an increasing price - then they invest - and surprisingly the share goes up! (and vice-versa).<BR/><BR/>My perception is that commentators are seeing the result and working backwards to a conclusion - I seem to remember (possiblyAnonymousnoreply@blogger.com