Six Core Truths Behind Market Reactions and Financial Impact

Course
6 Lessons

Catalysts aren’t random — they follow patterns. Even though markets look chaotic from the outside, price-moving events actually fall into a few predictable categories. The trick is not to memorize them, but to understand the psychology behind them. A catalyst is anything that changes what investors believe about the future.

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1. What specific events have the power to meaningfully change the price of an asset — and how can I identify them before the market reacts?

If you ask any seasoned investor what moves markets, you’ll often get the same answer: “Information.”
But that’s only half the truth.
The real story is that markets don’t move on information — they move on surprises.

1. What specific events have the power to meaningfully change the price of an asset .mp4

2. How do I evaluate whether a catalyst is already priced in — or whether the market is still blind to it?

Because here’s the truth:
A catalyst only creates an opportunity when the market hasn’t fully reacted yet.

2. How do I evaluate whether a catalyst is already priced in .mp4

3. What is the expected magnitude, direction, and timing of the catalyst’s impact — and what signals indicate that the reaction will be strong?

If the first two questions were about identifying catalysts and understanding whether they are priced in, this question takes you deeper into the real skill of catalyst-based investing:

Not all catalysts are equal.
Some shake a stock gently.
Some barely make a sound.
And some hit like an earthquake.

3. What is the expected magnitude, direction, and.mp4

4. What risks, counter-catalysts, or hidden variables could weaken, reverse, or delay the expected price movement?

If the first three questions were about spotting catalysts, understanding expectations, and sensing the size of the move, this question is about humility — the kind that keeps investors out of trouble.

4. What risks, counter-catalysts, or hidden variables could weaken.mp4

5. In catalytic capital (impact investing), what market failure am I trying to fix — and how does my risk help unlock additional commercial capital?

Catalytic capital is one of the most misunderstood ideas in modern finance.
People hear the word “impact” and imagine charity.
They hear the word “risk” and imagine loss.
They hear the word “catalyst” and imagine hype.

5. In catalytic capital (impact investing), what market failure am I trying to fix .mp4

6. How will I measure success — financial return, risk reduction, impact created, or capital mobilized — and over what time horizon?

Success in the world of catalysts is rarely simple.

In traditional investing, success means one thing: profit.
You bought something, it went up, you sold it — done.

6. How will I measure success — financial return, risk reduction, impact created, or capital mobilized .mp4