The above is one of my favorite phrases. It is also a reminder to me when markets are trending illogically. But what seems illogical to me may seem logical to others!
Take for e.g. global equities fell during the third quarter. Hindsight: The reasons were with weak manufacturing data, inflation, global growth concerns, rising interest rates, unemployment, Europe debt crisis, etc.
As you probably know, US economic data for the past month or two had been encouraging (the latest existing home sales data rose 1.4%, better than expectation). Inflation fears had fallen with respective CPI in US and China, falling to comfortable levels with lower inflation expectations.
Manufacturing data in US and China has been encouraging. Employment is steady. Global growth is less of a worry with the exception for Europe. Interest rates had fallen in Brazil, Indonesia and Australia with most on hold. ...
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