> Isn't the point that while securities don't necessarily
> reflect the value of a company or the overall economy, sooner
> or later they have to?
It depends on how long you're willing to wait: "later" is hardly a useful metric for time. The other sticky word, of course, is "value" -- what's the value of Microsoft? How might you measure it? Is Microsoft overvalued today or is it undervalued? I'll give you a break: was Microsoft over valued or undervalued three years ago?
Hindsight is 20/20, but I don't think this question has an answer.
Hmmm. So I guess I'd answer your question with: no, that's not the point.
/jordan