“The market is never wrong, some times behind or ahead but never wrong.”
Ricfle, I agree only with explanation! In my opinion, it is more that when the Market is wrong, the holding Investors pay the price. And when the Investors are wrong, they (the Investors) pay the price.
In other words there is no cost to the ‘Market’ of being wrong, because it is not beholden/answerable to the Investors. But I see from where you are coming.
The same is true of “The customer is always right”. Of course the '‘customer’ is wrong, sometimes. It is just that when he/she is right, he/she gets the benefit. When he/she is wrong - and it does happen! - the other party may well decide that the ‘benefit’ (to him/her/it) of being right in this instance is LESS that the opportunity cost of enforcing that right. It is sometimes laughingly called ‘goodwill’.
Kr,A. - LLV