The Ghost Train
THE FINANCE GHOST: Understanding the JSE’s narrative
Last year’s returns were boosted by a low base; further returns depend on underlying earnings growth
16 January 2025 - 05:00
There’s an old saying in the market that price drives the narrative. In other words, a stock that is booming benefits from positive headlines and a general belief that the good times will carry on forever.
Conversely, a stock that is falling through the floor suddenly has very few people willing to back it. This market phenomenon is the cornerstone of value and contrarian investing styles, where the belief is that human emotion and the power of the internet in reinforcing popular views lead to amplified share price moves in both directions. Such moves tend to correct, creating opportunities...
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