Robert Siller attempted to answer in this in his nobel prize lecture that "Active participants are trying to buy into their predictions of the conventional valuation of assets in the near future, not the true value."
Quote:A key Keynesian idea is that the valuation of long-term speculative assets is substantially a matter of convention, just as it is with judgments of facial beauty. Whatever price people generally have come to accept as the conventional value, and that is embedded in the collective consciousness, will stick as the true value for a long time, even if the actual returns fail for some time to live up to expectations. If an asset’s returns are carefully tabulated and disappoint for long enough, people will eventually learn to change their views, but it may take the better part of a lifetime.
We run an open capital account so market participants are pricing local assets vis a vis "safer' foreign bonds (Asset market model). If we think we can make better returns in dollars then shift to dollars until we get to equilibrium or local assets become cheaper.