By Larry Swedroe, includes “… The lesson for investors is that there is an important distinction between information and value-relevant information (information you should act on because it adds value to your expected returns). A country’s debt-to-GDP ratio, or its expected growth rate, is information but is not value relevant because in both cases the markets are well aware of the same information and thus have already incorporated it into prices.”
Read the full article on: The Evidence-Based Investor