ISCG - Overshoots And Overreactions

• One of the features of financial markets is that they often react to new information with emotional volatility and overshoot extremes.
• One of the enduring points of confusion is that academic finance teaches that markets are, more or less, informationally efficient.
• The market often goes too far, or not far enough, and bounces around a bit before settling in at the new, correct price.

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