When the crowd fears something will happen, something else usually does.
Core idea
Markets often price in widely feared risks, so those fears are already reflected in asset values, making unexpected, overlooked events more likely to move prices instead.
Practical application
As an investor, remember that headline fears are usually already priced in, so focus on overlooked risks and fundamentals instead of reacting emotionally to what everyone else worries about.
Why it matters
The special insight is that markets often pre-price widely publicized fears, so real investment danger and opportunity usually lie in the unexpected, underappreciated risks others overlook.
