Comments on: Why we can’t trust market signals http://blogs.reuters.com/felix-salmon/2009/07/01/why-we-cant-trust-market-signals/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Ironman http://blogs.reuters.com/felix-salmon/2009/07/01/why-we-cant-trust-market-signals/comment-page-1/#comment-3494 Wed, 01 Jul 2009 17:35:47 +0000 http://blogs.reuters.com/felix-salmon/2009/07/01/why-we-cant-trust-market-signals/#comment-3494 Felix wrote:

… it’s precisely at times like this, when correlations are at all-time highs, that the EMH breaks down entirely

And yet, throughout all the turmoil, we’ve demonstrated that the market has mostly behaved both predictably and rationally. If it helps though, stocks have risen since 9 March 2009 not because investor expectations of a robust recovery, but because things are expected to stop getting worse (there are a couple of charts at this post showing what investors have been expecting since stock prices began rising.)

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By: Max http://blogs.reuters.com/felix-salmon/2009/07/01/why-we-cant-trust-market-signals/comment-page-1/#comment-3489 Wed, 01 Jul 2009 15:34:29 +0000 http://blogs.reuters.com/felix-salmon/2009/07/01/why-we-cant-trust-market-signals/#comment-3489 Markets don’t just reflect fundamentals, they also change fundamentals (Soros makes this point all the time, but nobody seems to listen). The fundamentals are better because the stock market has recovered. The market rise is self-justifying.

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By: NotNasser http://blogs.reuters.com/felix-salmon/2009/07/01/why-we-cant-trust-market-signals/comment-page-1/#comment-3484 Wed, 01 Jul 2009 15:14:15 +0000 http://blogs.reuters.com/felix-salmon/2009/07/01/why-we-cant-trust-market-signals/#comment-3484 But Felix, don’t youlisten to Dennis Kneale???

The recession is over! Everyone but a few cowardly bloggers in their mother’s basement is aware of that.

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