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Do fundamentals or emotions drive the stock market?
Posted By Barry Ritholtz On April 6, 2005 @ 2:20 pm In Economy,Markets,Psychology | Comments Disabled
McKinsey — the fine folks behind some of the worst financial ideas of the past 1/2 century — ask the question:
Normally, I prefer to give the author the benefit of the doubt, and let the idea stand or fall on its own merit. But McKinsey has demonstrated such a wanton incompetance as to so many financial matters, that I simply cannot. Enron has been called  "the house that McKinsey rebuilt." I’m not sure which was worse, the financial advice, or the egregious ethics.
Regardless, they are a tainted source to me. I cannot overlook their lack of broad vision, the reckless lawlessness of their advice, and the stench of general hubris that envelopes the firm.
I can read their late-to-the-party take on Behavioral Economics, but I cannot forget that these are the financial engineers of the nation’s largest corporate collapse.
So why bother?
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2005/04/do-fundamentals-or-emotions-drive-the-stock-market/
URLs in this post:
 Do fundamentals—or emotions—drive the stock market? : http://www.mckinseyquarterly.com/article_page.aspx?ar=1593&L2=5&L3=7&srid=21&gp=1
 called: http://www.corp-research.org/nov02.htm
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