Talking Real Money - Investing Talk

Markets Anticipate Economic Activity

Episode Summary

Stocks rarely react to expected news.

Episode Notes

You would think that after one of the worst economic reports in the history of the United States that the stocks market would crash. Yet, it barely moved after U.S. Gross Domestic Product (GDP) plunged for the second quarter of 2020. 

Why didn't markets fall? Everyone expected bad news, so it was built into prices. You need to understand that markets cannot be beaten. They can only be planned for.