Expectation gaps and surprise

Markets move on the gap, not the level.

Expectation gaps and surprise

| Concept | Explanation | |---|---| | Positive surprise | Outcome is better than expected. | | Negative surprise | Outcome is worse than expected. | | Priced in | The current market price already reflects an expectation. | | Second-order effect | Indirect consequence beyond the immediate headline. | | Revision | Participants change future forecasts after the event. |

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