In investing, we like to believe that logic rules. We run the numbers, study earnings reports, model cash flows, and read balance sheets. And over the long haul, those fundamentals do matter. But in the short term? The market isn’t always rational. It’s often driven by something far less tangible—perception.
Markets don’t wait for the dust to settle or for the data to confirm a story. They anticipate. They react. And frequently, they overreact.
This post originally appeared at Investing Daily.