Announcement effect is the impact of news, especially issued by government or monetary authorities, on financial markets.

The announcement effect broadly refers to the impact that any type of news or public announcement—especially when issued by government or monetary authorities—has on financial markets. Researchers have suggested that bad news has a larger impact on markets than good news, and that good news does not lift the market as much as bad news depresses it. Leaking critical news can allow the market to find equilibrium, or to “discount the stock”—that is, to incorporate the unexpected news into the price of a stock.
For instance, if a company's earnings are especially greater than usual one quarter, it might choose to leak the information to help ease the pressure for an unsustainable price spike at the time of the official earnings release. Also, bad news during a bear market has a bigger negative impact than bad news during a bull market, and negative surprises often have a greater impact than positive surprises. Economists, technical analysts, traders, and researchers spend a great deal of time trying to predict the effect of news or public announcements on stock prices in order to discern, among other investing strategies, the wisdom of switching between asset classes or moving in and out of the market altogether.

Announcement Effect

The dotcom bubble was a rapid rise in U.S. equity valuations fueled by investments in internet-based companies during the bull market in the late 1990s.

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The dotcom bubble was a rapid rise in U.S. technology stock equity valuations fueled by investments in Internet-based companies during the bull market in the late 1990s. The dotcom bubble was a rapid rise in U.S. technology stock equity valuations fueled by investments in Internet-based companies during the bull market in the late 1990s. In the years preceding the bubble, record low interest rates, the adoption of the Internet, and interest in technology companies allowed capital to flow freely, especially to startup companies that had no track record of success. The dotcom bubble was a rapid rise in U.S. technology stock equity valuations fueled by investments in Internet-based companies in the late 1990s. The dotcom bubble, also known as the Internet bubble, grew out of a combination of the presence of speculative or fad-based investing, the abundance of venture capital funding for startups, and the failure of dotcoms to turn a profit.

Dotcom Bubble

Morningstar is a Chicago-based investment firm that offers various products and research insights in over 27 markets around the world.

Morningstar is a Chicago-based investment research firm that compiles and analyzes fund, stock, and general market data. The data and research provided by Morningstar include insights on investment offerings, managed investment products, publicly listed companies, and real-time market data. This extensive line of products empowers various financial professionals, including individual investors, financial advisors, asset managers, retirement plan providers, and institutional investors. Morningstar is a respected and reliable source of independent investment analysis for all levels of fund and stock investors, ranging from inexperienced beginners to sophisticated experts. Among its many offerings, Morningstar's comprehensive, one-page mutual and exchange-traded fund (ETF) reports are widely used by investors to determine the investment quality of the more than 2,000 funds.

Morningstar Inc.

Reuters is a global information provider geared toward professionals in the financial, media, and corporate fields.

Reuters is a global information and news provider headquartered in London, England, that serves professionals in the financial, media, and corporate markets. Created from the Thomson Corporation's 2008 acquisition of Reuters, Thomson Reuters is a comprehensive multinational media and financial data and news resource. The core strength of Thomson Reuters is in providing content, analytics, trading, and messaging capabilities needed by financial professionals via its Thomson Reuters Eikon system. Both of its parent companies—Thomson Reuters Corporation and Thomson Reuters PLC—were listed publicly. On April 17, 2008, the Thomson Corporation officially acquired Reuters Group PLC, forming Thomson Reuters.

Reuters

"Sell in May and go away" is an adage that warns investors to divest their stock holdings in May to avoid a seasonal decline and to reinvest in November.

"Sell in May and go away" is a well-known financial-world adage. From 1950 to around 2013, the Dow Jones Industrial Average posted lower returns during the May to October period, compared with the November to April period. , lower trading volumes due to the summer vacation months and increased investment flows during the winter months were cited as contributory reasons for the discrepancy in performance between the May to October and the November to April periods. In April 2017, analysts at Bank of America Merrill Lynch looked at three-month seasonal stock market data going all the way back to 1928 and found that historically, June through August was the second-most robust period of the year. According to a May 2018 article in _Investor's Business Daily_, if an investor had sold stock in May 2016, she would have missed some lucrative runs.

'Sell in May and Go Away'

Zacks Investment Research is an investments data and information service provider known for their mathematical approach to earnings estimate revisions.

Table of Contents
What Is Zacks Investment Research?
Understanding Zacks Investment Research
Zacks Ranks
Zacks vs. Morningstar
Example of Zacks Investment Research
The Bottom Line
What Is Zacks Stock Screener?
How Much Does Zacks Stock Screener Cost?
What Is the Zacks Industry Rank?
What Is the Zacks Mutual Fund Rank? Zacks Ranks uses four criteria to assess earnings potential:
**Agreement**: the extent to which brokerage analysts are unanimous in assessing the change in a stock's valuation.
**Magnitude**: the size of the latest change in analysts' consensus.
**Upside**: the difference between the estimated change, as calculated by Zacks, compared with the consensus estimate.
**Surprise**: the occurrence of positive earnings surprises in the last few quarters. Each quarter, the Zacks Quantitative Research Department calculates a rating for 19,000 different mutual funds, based on the average Zacks Rank of the stocks held by each fund, as well as other quantitative factors. In keeping with their focus on earnings estimates, the Zacks Stock Screener also allows investors to sort stocks according to their Zacks Rank and changes to their earnings per share.

Markets News

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Announcement Effect

Dotcom Bubble

Morningstar Inc.

Reuters

'Sell in May and Go Away'

Zacks Investment Research