NEW YORK (Real Money) -- The battle between those who know and those who don't: It play out every day in this market, and it's always just a series of small unconnected skirmishes that don't add up to much of an impact at all.
Yesterday's skirmish, for example, broke out at the open when stocks sold down on some disappointing January retail sales. Now, we knew already, from every major retailer, how terrible the weather has been. We have heard from the auto companies that there are too many cars on the lots, in part because of a huge decline in traffic to the stores, again because of the weather.
But we decided that this was, somehow, new news. We reached a harsh verdict that the market is overvalued -- it's always futures-led, because the market's dominated by macro hedge-fund traders -- and everything goes down except, at least on my screen, Time Warner Cable (TWC).
I sit there and look at the sea of red, and I say to myself: One of the smartest business people in the world, Brian Roberts (yeah, yeah, my boss), decided to spend $45 billion to buy Time Warner, an asset on the decline with a heck of a lot of homes wired, with no overlap. He's willing to subject his company to a grueling process in order to get approval. He doesn't care that the stock was at $86 this time last year. You don't hear him moaning that he wished he had bought it earlier. He just knows that the market is still undervaluing the asset as a business.