Part 6/10:
The Market’s Irrational but Reasonable Nature
Despite the stock's decline, Posis argues that the market's irrationality is reasonable—a natural response to fear, uncertainty, and emotional biases. He compares current Tesla stock tensions to past market panics, emphasizing that bad news can drive prices down even when fundamentals remain strong. He notes that historically, domination in a market or sector doesn’t prevent eventual downfall, especially when faced with fraud, scandal, or shifting technological landscapes.
He believes that investors should expect market irrationality; it’s an inherent part of trading. For Tesla, this means buying at discounts during dips—seeing market reactions as opportunities rather than reasons to panic.