"The generally accepted view is that markets are always right - that is, market prices tend to discount future developments accurately even when it is unclear what those developments are. I start with the opposite view. I believe the market prices are always wrong in the sense that they present a biased view of the future." ~ George Soros
Soros understood a fundamental truth about markets. He knew that they're very good at pricing the "now". Meaning, markets typically discount a future that's non-dynamic and looks a hell of a lot like today. This is what he means by "biased view of the future". He's saying that markets overweight the present when they're discounting the future (this is called recency bias).
Our team at Macro Ops agrees.
This is why it pays to be a contrarian - a smart contrarian, to be specific. Traders who can identify the largest ...