Take for example the last 4 weeks of good news stories and optimisim and look whats happened to the markets. If we say the markets look ahead 4 to 6 to 12 months ahead, why did the market not factor in all this suprisingly good news months ahead of schedule and start rising. No, it started to rise spot on good news stories and good figures, or better than expected figures. I reckon markets still react more to the now, the present, a few days/weeks in advance, but certainly not months or even years ahead.
Next week kicks off the reporting season in the U.S., it will be ugly over coming weeks thats for sure, but just how ugly will it be?
I say the Dow Jones will hit a new low in April as it factors in the daily company reports which will certainly be very dismal.
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