So therefore, major equity movements are resultant from new information being introduced to the market. My question would be over say a 100-year horizon would that be the explanation for major equity movements, positive/negative information being introduced to the market? Overly simplistic and I can clarify if needed
Broadly, yes. New information. But as Fischer Black notes, not all information is valuable or useful. So if people act on that, there can be noise as well.
So therefore, major equity movements are resultant from new information being introduced to the market. My question would be over say a 100-year horizon would that be the explanation for major equity movements, positive/negative information being introduced to the market? Overly simplistic and I can clarify if needed
Broadly, yes. New information. But as Fischer Black notes, not all information is valuable or useful. So if people act on that, there can be noise as well.