Why Do Markets Ignore Big Risks but Freak Out Over Small News?
Have you ever noticed how the stock market instantly reacts to a company’s earnings report but shrugs off major risks like wars, pandemics, or trade wars—until it’s too late? This isn’t just randomness. Markets are great at pricing in clear, measurable news—like a 20% drop in a company’s growth—because analysts can plug those numbers into their models. […]