Most academics and market professionals would agree stock markets are “efficient.” In easy-to-understand terms, most companies, especially bigger ones, are so well-followed by analysts that virtually everything worth knowing about them is known. So, the current stock price for any well followed company is an accurate reflection of its prospects going forward. Surprises are rare. Until they aren’t.
Anyone who agrees with this theory should spend a lot of time reflecting on the month just ended. Efficient markets or not, earnings season always brings surprises. May was no exception.
Our May 2023 Market Commentary and review provided by provided by Peter W. Tuz, CFA, CFP®, President & Director, Portfolio Manager, Chase Investment Counsel.