What markets say

Steps in the right direction are likely to be taken, both in relation to Greece, and in relation to bank recap and improved sovereign support. But it is unlikely to be the ‘bazooka’ the market has been hoping for in recent weeks.

We often hear that markets want such and such policy. Or that some changes in the market were caused by some announcement. Such narrative is attractive for the media, but such claims have no rigor or value.
The only information generated by markets (of any kind) are prices and trade records. Anything else is speculation or anecdotal opinion (often from a single perspective, such as sellers), if not plain propaganda.

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One Response to “What markets say”

  1. Anonymous Says:

    yep ! very true. In fact markets don’t speak, because they’re not "persons". Another thing we often hear is that "market are testing xxx’s government". But it’s the opposite : it’s countries, borrowing money on market places, that are testing their own strenght.

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