In a simplistic way, if a share is overvalued by a large factor, any body dealing in it has to be either a looser or a gainer.
By timing the rise and fall of 'sentiments' powerful holders will always sponge off the excess money pledged in these shares. They also harm wider participation.
It is a pure game of 'lure' and 'loot' and it is an unintended outcome of 'Share' market.
The intention of 'Share' market is to make available, capital from public to a venture, which 'must' ( with sound fundamentals etc it 'MUST' ) earn a fair profit, and give it back to the real owners 'the share holders'.
This simplistic view must always remain topmost in our analyses. If a 'share' or a 'sector' shows growth potential, and catches public fancy, and people vie to buy it from each other, it can be allowed to have a 'proportionately' higher than normal (strictly mathematically calculated) value.
It provides for good entertainment ( and very vital continued interest of the participant) when a successful investor 'thinks' his accumen got him some 'extra' profit.
Same mechanism should be used to generate interest in bringing public participation in shares of industry which is essential and beneficial for 'social living'. ( By preferred 'manipulation' of profitability through incentives etc.)
It so happens that at trillions of dollars 'worth', world economy is like an ocean. Buffering your positions through variations is like harvesting tidal energy of this ocean.
