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Monday, September 27, 2021
All bad news is priced into the stock market, until it isn’t.
I lost count long ago the number of financial services pros that no matter what risks were barreling straight down on investors would tell me it was already priced into the valuations of public companies.
Back in late 2007 when two Bear Stearns (ticker symbol ‘BSC,’ for financial markets historians) hedge funds seemingly blew up out of nowhere, I remember making calls late at night from inside a conference room to contacts to find out what in the world was going on. “Nothing to see here, stocks will climb the wall of worry my friend,” is the general gist of how these calls collectively went.
We all know now what would happen next — bye-bye Bear Stearns, bye-bye Lehman Brothers, and almost…