Tag Archives: investing

It’s Just the Way the Market Works!

Stocks move on future news:

The market is an information processing machine, and there is a lot of information to process. Journalists will tell you why and what it is, which may or may not be related. Think of the market as a random walk. It’s randomly moving around, digesting the news, and over time, earnings grow, and then the stocks go up, but nobody knows in advance which stocks will be the winners. And in reality, the returns of the market overall are the handful of stocks that have exceptional gains and have been basically the winners in the market.

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Is the Market TOO High?

Is the Market TOO High? by Jeff Holland{1:45 minutes to read} The market is a giant processing machine that sets prices by aggregating information from investors around the globe. Future, unknown news is what ultimately moves the market; therefore, the only way the market can be viewed as “too high” is with hindsight. We as people make new highs every day in our lives (our age).

Headline markets like the S&P or Dow Jones may appear too high—but really aren’t when viewed in the context of a diversified global portfolio.  

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