News is Old

Via Mark Rzepczynski, we get a brilliant reminder that the issues concerning most investors are for the most part, not surprises to Mr. Market.

Long before something makes it to the front page news, or even C6, someone else saw something and acted upon it already.

By the time something has been published, it has already been discussed, debated, circulated, and more importantly, traded upon by buyers and sellers before it eventually reaches someone in the media.

If most of these issues are already reflected in price, why does the news affect us? Mostly, IMO, because it drives our emotional states.

Investors must always ask themselves: of all these items, what is already known and already reflected in prices?  Genuine surprises not already in price are relatively rare.


What is Obvious?

Source: Disciplined Systematic Global Macro Views



See also:
Don’t Listen To Market Hecklers


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