The street is in the habit of assigning reasons for every stock move. Unfortunately, the reason assigned is often wrong. Consider how wrong the street’s collective wisdom can be: In October-November 2024, when the correction began, the reason assigned was that a “Sell India-Buy China” trade was underway. A few weeks later came the realization that it was actually money moving back to the US. So, the street is in the habit of believing anything that appears logical and relatable. Whether it is true or not, it figures out later. So make a distinction between what appears to be the reason, what could be the reason, and what is the actual reason.
