I wonder if some of this is because of the "prices are set on the margins" effect of markets. The price of anything is set by the folks who are actively transacting at any given time; if you're not buying and selling, your opinion doesn't matter.

Oftentimes, near a market top, the people who are value investors and actually care about price end up selling off all their holdings. But because they have already sold, and are not buying, they drop out of the market entirely. Prices get set by the people who are price insensitive, because they're the only ones willing to participate. As a result, you often get the "blow off top" right before a market crash, where the stock market moves sharply upwards even though fundamentals say it should crash. All the folks who believe it will crash have already left and no longer participate in price-setting.

> But because they have already sold, and are not buying, they drop out of the market entirely. Prices get set by the people who are price insensitive, because they're the only ones willing to participate.

The buy & hold value investor is also not participating in price discovery since they are just passively holding.