It’s an interesting and hypothetical notion, that if enough people realise that by actively boycotting the market, supply and demand will do the rest. However, markets fluctuate because consumers are fickle and this is the essense of it. A completely rational market would only be possible if we were all robots, and then there wouldn’t be a need for one. Suppose for a moment that if enough buyers got together and decided to collectively boycott house buying, then theoritically it may have the desired effect. However, they would all be competing with each other when they all decided the time was right to buy, and we’d all be back where we started. The fact that some “stupid” people are still buying may well be in the fence sitters’ interests, because if their decision was “stupid” then it will likely have negative consequences.
