From Yahoo today:
Investors had hoped that FedEx’ raising of its guidance in early December for its fiscal second quarter meant a more thoroughgoing economic recovery than the company described in its results on Thursday, said Edward Jones analyst Dan Ortwerth. “The market had decided this meant the economy was going gangbusters. Then out comes the details. The economy is improving but it’s still on shaky ground. So the stock is back to where it was before the pre-announcement,” Ortwerth said. “It’s almost comical. The price goes up, the price goes down.”
Dan, my friend, since when did volatility become abnormal? That little paragraph is such a great microcosm of the insanity of trying to use news and fundamentals to guess market direction.
December 17th, 2009 at 3:26 pm
Or even the insanity of explaining the price by the news (ie financial commentators ALWAYS find a reason to explain ANY movement in stock markets - even “meaningless ones”…
Peter Borish says (and I quote from your book ;-)
Price makes news, not the other way around. A market is going to go where a market is going to go.
!