Brad-

That is certainly the theory: investors carefully discount future cash flows and price changes are the result of this evaluation process. But empirical tests of this proposition are unable to identify a link between changes in fundamentals and price changes.

The best known is the research stream launched by Shiller in 1981 which concludes that almost all market volatility is noise. This implies one can safely ignore all current economic and market news when making investment decisions.

Noise is even more pervasive when considering individual stocks.

Brad, we will have to agree to disagree on this issue.