Educate Me Please

[Losing Faith]

What does, for instance, 50% overvalued mean ?

Does it mean 50% of 'fundamental' price

i.e 1.5 x the 'fundamental value' => ~33% correction,

Or does it mean 50% of current price

i.e 2 x the 'fundamental value' => 50% correction.

Anyone ?

Thankyou.

[Casual Observer]

What does, for instance, 50% overvalued mean ?

Does it mean 50% of 'fundamental' price

i.e 1.5 x the 'fundamental value' =>  ~33% correction,

Or does it mean 50% of current price

i.e 2 x the 'fundamental value' => 50% correction.

Anyone ?

Thankyou.

<{POST_SNAPBACK}>

It means, for example, a house that ought to be priced at £80k is in fact priced at £120k. A 33% fall is needed to bring it down to true value.

[Losing Faith]

It means, for example, a house that ought to be priced at £80k is in fact priced at £120k. A 33% fall is needed to bring it down to true value.

<{POST_SNAPBACK}>

So it is relative to the understood 'fundamental' value then.

Thanks for clearing that up.

Cheers.