Comment Re:Largest Ponzi Scheme Ever (Score 1) 113
Well, the company itself is only one piece of the puzzle. They're also connected to vendors, customers, competitors, their particular market and the general economy. All of those give a lot of impulses into the system, if your competitor launches a great new product that's bad for you. If your vendor's got supply problems, that's bad for you. If your customers for some reason get mad at you that's bad for you. If they suddenly want something else like tablets instead of your laptops that's bad for you. Growth and recession drags the entire economy up and down. The effects ripple through like waves in a pond and it's never still. Just because there's waves on the surface doesn't mean the tide stops coming in, but if you measure from the bottom of one wave to the top of the next then it might go against the fundamentals. They exist if you're investing in a far longer horizon where today's waves are of no real significance, in the long term the companies that make money go up and the ones who lose money go down.
That said, belief is often more powerful than the fundamentals until the illusion cracks. For example take the dotcom boom, as long as everyone thinks it's a boom they hold on to their stocks. If it dips, they think now they're getting value and buy more. That happens until the bad news overwhelm the value buyers and the stock really start tanking, which again leads to a stampede out. At every step of the way there's people trying to be ahead of the market, but the day traders don't really influence the long term stock price. They're just there trying to make a margin on the market over-reacting/under-reacting or not grasping all the interrelations at play.