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I read a financial newspaper report earlier today predicting good results for Tesla for its quarterly earnings report today, and thus a likely continued strong performance of Tesla stock. Seeing the headline of the article kindly submitted here prompted me to read the fine article, of course, and also to check for other news stories from later hours of today about Tesla.

In approximate chronological order:

"Tesla Motors stock slides despite delivering 5,500 cars in third quarter"

http://www.mercurynews.com/business/ci_24460515/tesla-motors...

"Tesla Beats Expectations On Record Sales, Investors Decide To Sell Anyway"

http://www.forbes.com/sites/markrogowsky/2013/11/05/live-tes...

"Tesla loses $38 million; adjusted results beat forecast"

http://www.usatoday.com/story/money/cars/2013/11/05/tesla-ea...

"Tesla outlook, deliveries fall short amid capacity constraints"

http://www.reuters.com/article/2013/11/06/us-autos-tesla-idU...

So a lot of investors saw news about the same earnings report, but some considered differing additional sources of information, or simply interpreted the same report differently. Different investors have differing investment goals, so it's not completely surprising that the same news can prompt some investors to sell while others hold and a few even buy.

It will probably take a few more days to be sure what interpretation of Tesla's news is most persuasive to the largest number of investors. (Disclosure: I do not own stock in Tesla nor do I own stock in any other company. My son the hacker has an investment portfolio, but I have no idea what is in it.)



For any sale there will be a buy and vice versa.


For any sale there will be a buy and vice versa.

Well, yes, of course, and I think everyone here on Hacker News is aware of that. But the transaction may not occur at the price you desire. "The market can remain irrational longer than you can remain solvent" is still an important idea for investors to keep in mind.


Not a price you desire, but always a price you approve of. (Barring margin calls and similar complications.)


If the market remains irrational longer than you can stay solvent, the market is no longer irrational.


Why? Why should the time my money lasts have any bearing on whether we judge markets rational or not?


...aaaaaaand we are now in the realm of philosophy. This discussion is over ;) "What does the word 'rational' mean?"




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