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Long term investing is the way to go, but that doesn’t mean you should hold every stock forever. We don’t wish catastrophic capital loss on anyone. Spare a thought for those who held Paradise Entertainment Limited () for five whole years – as the share price tanked 80%. Furthermore, it’s down 10% in about a quarter. That’s not much fun for holders. But this could be related to the weak market, which is down 7.3% in the same period.

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company’s share price and its

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