Markets are noisier, faster and more reactive than ever. But does short-term thinking create long-term opportunity?
In this episode of A Value View from The Merchant’s Trust, lead manager Simon Gergel explores how modern markets have largely shifted away from individual stock picking towards momentum, passive flows and broad market positioning.
Simon discusses how short-term behaviour, driven by hedge funds, basket trades and factor investing, can lead to sharp and sometimes ‘vicious’ price movements, with shares rising or falling regardless of their underlying long-term value.
He explains why this environment can be uncomfortable for investors, but also why it creates opportunity. As markets focus more on short-term news and sentiment, long-term value can be overlooked, opening the door for disciplined investors to identify mispriced companies.
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