The expectations, in turn, set the price of the particular security or securities. If the view is generally favorable, this justifies the action that justifies the expectations. Prices go up. This attracts further attention. The process continues.
Financial genius is a rising market, achieved by expectations of a rising market.
Genius, as always, dissolves when there comes an end to illusion, and with the general rush to get out. Joseph Schumpeter, an economist of impeccably conservative credentials, thought these recurrent episodes greatly desirable. They cleared the economic system of the naive, inadequate, and stupid. Next Millennium Asked to predict, one expert says he has no clue. Brilliance does not always imply access to a crystal ball.