Oh, there are studious investors, investigating the worth of a company and investing accordingly. But I think the vast majority—and especially newcomers—use another approach.

These people aren’t really interested in the intrinsic worth of the company (ie, the company's financial strength, market share, market prospects, etc). They’re focused on how other investors perceive the company’s stock. These speculators want to buy a company’s stock only when they think others will come along and buy it from them later at a higher price. If such a speculator studies company or economic performances, it is with an eye to predicting how other investors will act.

It becomes a game of anticipation. Like collecting books, dolls, etc.

This isn't a new idea, of course.

Shouldn't this warn us not to look at the stock market as an indicator of the state of the economy—except in a rude way?