Micron's Stock Epitomizes Overextrapolation Of Cyclical Gains (NASDAQ:MU)

Alexander Sikov/iStock via Getty Images Neither the market nor the economy is fully efficient in real time, but both trend toward efficiency over the long run. Economic inefficiency occurs when supply and demand get out of line with each other, resulting in a temporary window of excess value capture. Companies that produce the undersupplied good or service can experience higher than normal margins, volume, or both, thereby achieving greater than normal profit. Over time, this corrects. The abnormally high p ...