The Market Doesn’t Move Just on Fundamentals Alone.

A stock can report strong earnings and still fall. A company can post weak numbers and still rally. Why? Because markets price expectations, not just outcomes. When expectations are already high, even good results can trigger selling because investors were positioned for something even better. On the other hand, when sentiment is extremely negative, a small improvement can spark a sharp rally as fear starts turning into optimism. That’s the psychology behind “buy the rumour, sell the news.” Price is ultimately a reflection of what investors collectively believe about the future — and when that belief changes, price can change long before the underlying fundamentals do. The smartest investor isn’t just asking, “Is this stock good?” They’re asking, “What is the market already expecting?”