Paul Tudor Jones II, the founder of Tudor Investment Corporation, said in Jack D. Schwager’s Market Wizards: Interviews with Top Traders (1989):
“I always believe that prices move first and fundamentals come second.”
“Prices lead fundamentals” and “prices lead, fundamentals follow” are other ways of saying the same principle. Jones believes that the price looks to the future and anticipates the fundamentals soon to come.
Wikipedia: Paul Tudor Jones
Paul Tudor Jones II (born September 28, 1954), is the founder of Tudor Investment Corporation, a private asset management company and hedge fund. As of March 2014, he was estimated to have a net worth of US$4.3 billion by Forbes Magazine and ranked as the 108th richest American and 345th richest in the world.
He founded the Robin Hood Foundation in 1988, which focuses on poverty reduction.
Trading style and beliefs
As reported in Market Wizards and the press, Jones futures trading style and beliefs are summarized as follows:
. He believes prices move first and fundamentals come second.
Interviews with Top Traders
By Jack D. Schwager
New York, NY: Perennial Library
I (Paul Tudor Jones—ed.) always believe that prices move first and fundamentals come second.
11/10/1998 6:12:00 PM
To: Lucretius who wrote (2207)
WRONG!!! Price leads fundamentals. The problem is that no one has a clear view of the future.
Google Groups: aus.invest
An article worth reading.
B J Foster
Paul Tudor Jones: He believes prices move first and fundamentals come second. He doesn’t care about mistakes made 3 seconds ago, but what he is going to do from the next moment on. Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.
Quantitative Trading Strategies:
Harnessing the Power of Quantitative Techniques to Create a Winning Trading Program
By Lars Kestner
New York, NY: McGraw-Hill
The old adage, “Prices move first and fundamentals follow” holds true. While there are good fundamental analysts performing very rigorous work, when analyzing companies’ earnings potential, even the best analysts are subject to the market’s underreaction and overreaction.
Advanced Swing Trading: S
trategies to Predict, Identify, and Trade Future Market Swings
By John Crane
Hoboken, NJ: John Wiley & Sons, Inc.
PRICES LEAD FUNDAMENTALS.
The statement that prices lead fundamentals has probably shocked or upset many traders. The fact is that I believe price leads fundamental news in the marketplace. Markets seem to top just when the fundamental news is the most bullish and bottom out when the news or reports are the most bearish. I’m unable to count the number of times traders have asked me, “How can the market be trading higher? We just had a very bearish report.” The answer is simple: The price has already discounted the fundamental news. Successful traders are already looking into the future, while novice traders are still trying to trade off past news.
“I always believe that prices move first and fundamentals come second.” Paul Tudor Jones
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11:00 AM - 23 Feb 2014
Prices Lead Fundamentals. The Energy Report 5/13/15
Wednesday, May 13, 2015
by Phil Flynn of The PRICE Futures Group
With the recent rebound in the price of oil I am reminded of the famous quote by legendary trader Paul Tudor Jones that prices move first and fundamentals follow. That is why many missed the bottom of the oil market and why many oil bears are still astounded that prices continue to move higher, but trying to say that current fundamentals are what is driving this market is missing the larger more significant part of this turn around
New York City • Banking/Finance/Insurance • Wednesday, December 02, 2015 • Permalink