[eastbay]

[ QUOTE ]
Sort of just one of those things I've never fully understood. I understand how what you're saying would work for an individual stock, but it just seems like a large collection of companies simultaneously releasing terrible earnings reports isn't likely.

[/ QUOTE ]

You're overestimating the degree to which many people see their stocks as pieces of a company with underlying value. Many see them as the equivalent of beanie babies or any other worthless trinket that only has value because someone might buy them for more than they paid. The psychology should be pretty clear from there.

eastbay