Financial markets are neither rational nor efficient. This is most evident during bear markets when investors look to blame government policy, inept regulation, short sellers, 'black box' hedge funds or even fat finger traders for a sell off.
But once the mood of the herd changes there is nothing to blame, except human nature & our survival instincts. Fundamentals will only lead you astray (ie. the best economic news comes out near market highs while the worst economic news comes out near markets lows) and news & financial media are merely noise. Understand collective social mood, of which the stock market is the perfect barometer, then you'll understand markets.
