The Difficulty and Necessity in Rebalancing The Dumbest Reason to Buy a Stock

The Disconnect Between Supply and Demand

We don't have a discernible edge determining whether IBM's earnings are going to beat the Street by a nickel. But there are a wide variety of situations in which there are dislocations - like mergers, spinoffs, short-term bad news, legal issues - where we think we understand why there might be a huge disconnect between supply and demand for a given security.