Do fundamentals—or emotions—drive the stock market?

Do fundamentals—or emotions—drive the stock market?

Emotions can drive market behavior in a few short-lived situations. But fundamentals still rule.

When markets deviate

Irrational behavior.
Systematic patterns of behavior.
Limits to arbitrage in financial markets.

Momentum and other matters

Persistent mispricing in carve-outs and dual-listed companies

Markets and fundamentals: The bubble of the 1990s

Focus on intrinsic value

All this and more on http://www.mckinseyquarterly.com/article_page.aspx?ar=1593&L2=5&L3=7&srid=297&gp=0