Our subjective perception impacts stock prices, that is logical right? But few know that consequently higher stock prices also improve fundamentals. Take the example of Tesla stock, high and higher stock prices allow for cheaper and cheaper capitalisations, the company can issue just a bit of shares and get to billions.
These billions allow it to be competitive, allow it to grow hyperbolically which reinforces its fundamentals, earnings. The theory behind such a feat is reflexivity.
By discussing your comments we give examples on how we as investors, how our subjective mind impacts the market, stock prices and consequently fundamentals.
The thing to remember is that it works also in the opposite direction.
0:00 Market mentality
1:01 Fighting the trend?
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