Everyone says the market is efficient and all publicly available news are fully depicted on the price.
So when the yield inverted today why we had a sell off at the end of the day?
Its not that this inversion happened suddenly.
For weeks every economic journalist publish news about the upcoming inversion and what does that mean for the makers and economy. I would expect this to be fully priced in, since it is expected to happen anybof these days.
So why stocks feel rapidly at the end of the day for something that everyone knew is coming?
Another example are Chinese stocks. Everyone knows the list of delisting. But the moment Baidu is added on the SEC list it falls 8% in one day, as this were some news that nobody expected
On the other hand when NFP numbers come below or above predictions the stock market usually goes the other direction or not moving at all and everyone says “bad (or good) news where already was priced in”
So finally what is priced in and what is not?
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