Put all these pieces together, and here's what we have: a rise in Chinese share prices in the last year that seemed to be driven more by investor psychology than by anything fundamental
Lately this seems to be how stock markets work.
It has nothing to do with actual value, just the psychotic glee of investors and speculators who envision doubling their money every six months.
The stock market has become separated from reality, with the people running the giant pyramid scheme feeling entitled to skim off the top with high-frequency trading.
In the long term, the assumptions used in the stock market seem to be irrational, unsustainable, and pretty much impossible. And corporations are often overvalued based on valuations which is more than the company will ever earn in the next few centuries.
Stock markets are going to fuck up our economies more than they seem to be helping. Because they stopped having anything to do with fundamentals and sane valuations a VERY long time ago.
The stock market is a reflection of mass delusion and wishful thinking.
Sorry, that's false. The stock market (rather accurately) reflects the earnings and intrinsic values of the underlying companies (at least in the US). Values are a little bit frothy right now as we're 6 years into a bull market, but well within historical norms. The Shiller price:earnings ratio is around 25 right now, with the historical average being around 16-18 depending on your timescale.
Sure, there are plenty of people making money off the stock market and investors do dumb things, but the fundamentals of the stock market haven't changed.