The Stock Market Is Forward Looking

The efficient market hypothesis states that everything known is already priced in. All knowledge about future events are discounted back to present values and reflect in the current price. Value investor benjamin graham used the allegory of a manic, depressive business partner named mister market to describe mood swings in stocks. Some days mister market is feeling low and he's willing to sell his entire stake for next to nothing. And some days he's overjoyed and he wants way too high of a price.