The first thing you learn in finance class is that the markets are efficient, meaning that asset prices fully reflect all available information. This is a simple concept to understand, and it also helps investors read the tea leaves when it comes to the market action: stocks are discounting all available information at any time. Rallies and selloffs, while hard to predict and impossible to time, are just that — the reflections of the market’s ongoing optimism or improving outlook (which underlie the rallies) and deteriorating conditions (which drive the selloffs). The market is also a great forward-looking mechanism. Because… Read More
The first thing you learn in finance class is that the markets are efficient, meaning that asset prices fully reflect all available information. This is a simple concept to understand, and it also helps investors read the tea leaves when it comes to the market action: stocks are discounting all available information at any time. Rallies and selloffs, while hard to predict and impossible to time, are just that — the reflections of the market’s ongoing optimism or improving outlook (which underlie the rallies) and deteriorating conditions (which drive the selloffs). The market is also a great forward-looking mechanism. Because it does reflect all the available information at any time, a rallying market by itself is often a bullish indicator. This is what we have today — not only a more expensive market than a few months ago, but a market that just won’t stop. —Recommended Link— If you’re over 18 years old, you can’t be turned down for this program A simple membership form – one that takes 90 seconds or less to fill out – is all it takes to join a plan that pays out up to $12,040 a year in bonus… Read More