|There is another dangerous bias involved in already knowing subsequent market performances and unconsciously using those performances as the basis for describing certain news events as good or bad. Every day's news is a mixture of good and bad. If the market rises, it will be attributed to a favorable item of news, with the next morning's market commentary often noting that traders "ignored" this or that unfavorable development.
The stock market is relatively efficient in responding rapidly to obviously significant news events and in adjusting prices to reflect updated knowledge.
Source: Stock Market Logic
by Norman G. Fosback
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