Steve Leuthold’s July research included the following quote:
“Stock price movement represents the aggregate knowledge of Wall Street and, above all, its aggregate knowledge of coming events. The stock market represents everything everybody knows, hopes, believes, anticipates, with all that knowledge sifted down to…the bloodless verdict of the market place.” -William Peter Hamilton, The Stock Market Barometer, 1922.
This is the very reason why price is the primary input into our models.
