Insights

Why do stocks sometimes appear disconnected from the news that surrounds them? Stocks declining after a blow-out quarter and markets rocketing up in the midst of economic uncertainty are common occurrences and can be challenging to understand. Here, we discuss a few examples, both recent and historical, of instances where stocks and the overall market appeared to move in opposite directions from what the news might suggest. We will discuss why stocks can perform well even when it feels like a bad time to invest, and the risks that individual stocks may not keep up with expectations despite strong numbers. In the end, a long-term approach can help keep you from playing the expectation game.