Todays, lets talk about the greater fool theory, forex gains and losses and core earnings.

The greater fool theory states that people buy shares with the hope that a greater fool can be found that he can sell to for a profit.

Forget about value investing.......it is all, 100% about the greater fool theory.

Don't believe me?......look at the movements of export stocks from 2015 to now.

Currency movements have played havoc with company earnings in the past 18 months. Fortunes won, fortunes lost, all on the greater fool theory. After some wild fluctuations in share prices and earnings a lot of the companies will settle in their norms again.

Analyst try to be smart.  They go and invent the term called core earnings , taking out the forex gains and losses in their attempts to smoothen the fluctuations .

Taking out forex gains and losses only takes out a portion of the fluctuations.......it is an attempt at smoothening the curves......... 

They call it core earnings. 


What people don't know is that it is not the whole story......that is why people are surprised at the recent results. 


Even the so called core earnings have been  greatly distorted by fluctuations in exchange rates.

Not surprising that this year reporting season has been largely disappointing even compared to so called core earnings.

There are no real value investing. It is all a game. A greater fool theory.

Go and play the game the best you can.