On The Concept Of The Market As A Discounting Mechanism:

  • May 22, 2001
  • Norman G. Fosback


“Stock prices usually fluctuate in response to changing anticipations of
economic events…, not in response to the events themselves. Historically,
the stock market has demonstrated an ability to presage the economy by six to
12 months.”


–– Norman G. Fosback, from

Stock Market Logic, (1987, The Institute for
Econometric Research Inc., Ft. Lauderdale, Fla.).