Historians, in their quest to make sense of the past, refer to two types of source material. Primary sources are those artefacts, diaries or documents created more or less at the same time as the events they depict. Secondary sources, as their name implies, are somewhat second-hand; they refer to books or articles written subsequently, including those written by journalists after the fact. For historians, primary sources attract a degree of kudos and authenticity. Secondary sources, not so much. Primary sources are closer to the pure experience; secondary sources are tainted by at least some degree of reflection and inevitable bias. The financial markets offer only one real source of objective, non-negotiable news, for want of a better word. The primary – and for that matter the only – source of 'truth' in financial markets is the price itself, the price of a security as agreed between a buying and a selling party in voluntary exchange. Everything else is, if you'll pardon the inadvertent pun, speculation. | |
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