I know some language nerds who like to debate about whether certain aspects of language should be descriptive (dictionaries document how real people use language) or prescriptive (very smart people know the correct way to spell/use words, and that should be imparted to the less knowledgeable).
In that light, I'd always seen the stock market as purely descriptive - the price of a stock can be completely detached from the valuation or profits of a company, it's purely the price that someone in the market is willing to pay.
This feels like an attempt to make the stock market prescriptive - "we know that these retail traders are wrong for trading at such lofty prices, we need to fix this".
In that light, I'd always seen the stock market as purely descriptive - the price of a stock can be completely detached from the valuation or profits of a company, it's purely the price that someone in the market is willing to pay.
This feels like an attempt to make the stock market prescriptive - "we know that these retail traders are wrong for trading at such lofty prices, we need to fix this".
Spoiler alert: Descriptivism always wins.