Originally Posted by
Seneca Pilot
Buy rumor, sell news. Rinse and repeat.
Benjamin Graham in the classic book, “The Intelligent Investor” said in the short term, stocks are voting machines (whatever the herd votes with its stampeding feet based on rumor or anticipated facts), and in the long term a weighing machine (determining the long term value and pricing stock based on it.)
Secondly, the stock market prices in where things are expected to be, in 3-30 months. The public screams how can stocks go up when we are in the middle of a pandemic! Wiser stock investors anticipate there is a high likelihood of a vaccine with travel and business returning to near normal in that time period. They invest based on this anticipated future.
These are both keys that my wise investment management firm share in education of their clients. It is not something I have sucked out of my thumb.