Gyan about the stock market-1

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The stock market is the biggest money making machine, well thats what people think. It is the barometer of economic growth, this is what economists thinks. It is just a legal glorified institute of gambling, this is what i think...

The best part of the market is that

1. It is run by highly qualified intellectual people, some of them are the greatest brains in the world...who claim to know the pulse of the finance markets.
   
2. The market is driven always...and always by peoples sentiments

Now what i dont understand is that when there are some of the best brains that are working on the market, why is the market still working on sentiments. This is because that one intellect may forecast that the sales of the organization are going to fall the next year...well not the year but the quarter(this is still ok) deep fluctuation in the prices daily is what is not known. What i fail to understand is that when you invest in any company you do a complete analysis of the industry in which the company is working, operating incomes, cash flows, EPS and market share which can be done my any rational investor, it is the intellects that bring in sopistication, when there are standard procedures that why does the stock market operate under the environment of sentiments??

Even though all this ocean of knowledge is available, the stock market does not work rationally, as people will never want to loose money. So any kind of bad information creates panic and hovoc, even the most sophisticated people get worried.