When did good news become bad news for investors?

WHY do markets sometimes celebrate economic weakness, punish strong growth, and challenge everything investors thought they understood?

Imagine sitting in a packed stadium watching the championship match of the year. Your team is playing brilliantly, the defence is solid, and victory seems almost certain. Then something extraordinary happens. Your team scores, and instead of celebrating, thousands of spectators begin heading for the exits. You would be bewildered. Why would anyone leave when their team is winning?

Now imagine the spectators aren’t watching the scoreboard. They’re watching the odds. And that goal has changed the outcome of the bets they have placed. Suddenly, their behaviour makes sense.