Were you expecting a drop? The market wasn’t.

Here you go – the market’s logic.

Saturday.
Another war. This time in the Middle East.

Regular investors:
– Oh my God… I knew I should’ve sold everything on Friday! Monday’s going to be a bloodbath!

“Rational” investors:
– Right. Everything’s about to crash. Perfect. I’ll buy the dip.

Non-investors:
– Serves them right, those stock market speculators! All these games only last so long. Good thing I own real estate.

Analysts:
– Defensive assets will certainly rally. Risk assets are facing a massive sell-off. Russia will benefit, while EU countries will blah-blah-blah…

Media:
– The world will never be the same!
What will happen to the ruble?
What will happen to oil?
What will happen to “what will happen”?
Read our latest column!

Panic.
Forecasts.
Emotions.

And the market goes up.

Why?

Simple.

The risk of war was already priced in.
Fear had been sold in advance.

Now the market is looking ahead – to negotiations, stabilization, and the eventual end of the conflict.

If you’re hoping to buy cheaply once the idea becomes obvious to everyone, it doesn’t work that way I’m afraid – the market always looks forward.