2024-01-22 15:17:10 ET
Summary
- Trying to predict and trade on market irrationality is often a mistake, as it relies on other investors behaving irrationally as well.
- Instead, it is better to take advantage of irrational behavior after it happens, buying discounted stocks and waiting for rationality to be restored.
- W. P. Carey Inc. presents an opportunity for post-hoc exploitation of irrational market pricing, with a significant discount compared to its peers.
I frequently see investors get into trouble by trying to anticipate irrationality and trading on that prediction. The market frequently does act irrationally, but the better way to take advantage is AFTER that irrational behavior occurs.
W. P. Carey Inc. ( WPC ), a real estate investment trust, or REIT, presently represents an opportunity to exploit market irrationality post hoc. This article will consist of 2 parts:
1) Explaining how the post-hoc trade works....
Read the full article on Seeking Alpha
For further details see:
W. P. Carey: Post-Hoc Exploitation Of Irrational Behavior