Money, Credit and Asset Prices

According to mainstream economic theory, the prices of individual stocks respond rationally to unexpected news. However, real market movements appear to respond to news in more complex and sometimes perverse ways, overshooting or not reacting at all. Professor Pepper puts forward a new theory based on the analysis of the supply of and demand for investible funds. He shows that price movements are governed not by news but by financial requirements of investors, requirements which therefore become a powerful forecasting tool.