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Stock Market Research

Some pundits and investors are always salivating. Those who believe that good news on one or both of a couple key looming events will be enough to send the stock market soaring skyward. History has proven over and over again that the stock market’s reaction to good news is highly temperamental, and it often reacts negatively. But why? What causes such unpredictable behavior?

Once again, don’t be surprised when the good news myth gets busted. The anticipation of market-moving news gets gullible investors excited, but the excitement is soon punctured shortly thereafter with lots of disappointment. This pattern repeats itself over and over.

You would do well to heed the words of the legendary speculator Lord Rothschild’s savvy piece of contrarian advice (paraphrased): "Buy on the sound of the war-cannons; sell on the sound of the victory trumpets."

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