Insiders—CEOs, large investors, and corporate treasuries—operate on a different time horizon. They know that the stock market is a voting machine in the short term and a weighing machine in the long term.
The secret? The market rises in spite of bad news when liquidity is high. In 2020, the economy shut down, unemployment spiked, and GDP collapsed. Yet the stock market exploded to all-time highs. Why? The Fed injected $3 trillion. That is the undeclared secret. Liquidity trumps logic every time. Behavioral economics won a Nobel Prize for Prospect Theory, but Wall Street weaponized it. The secret is that human beings feel the pain of a loss approximately 2.5 times more intensely than the pleasure of an equivalent gain. the undeclared secrets that drive the stock market upd
They are all wrong. Or, at least, they are only describing the weather, not the climate. The market rises in spite of bad news when liquidity is high