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Sean HymanSean Hyman
Keymaster
Post count: 7046

Stocks do silly things around earnings releases that aren’t always rational. It’s why we don’t trade earnings, news events, etc.

I’ve had friends that try to buy good news and sell bad news, etc. And at the end of the month/quarter, etc. it was no better than a coin toss. Why? For this very reason, that in the very near-term, stocks don’t always act rationally.

Who’s that good for? Value investors. If they’re dumb enough to drive down this stock low enough (that just beat earnings and revenue and announced their next dividend), then we’ll get a lower breakeven price.

Also, with stocks…sometimes there are kneejerk reactions and the initial reaction isn’t the ultimate reaction. I’m thankful we’re not traders and don’t have to figure that out.

No matter what “madness” happens near-term, its fundamentals will take it higher long-term.

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