Investors ignore world-changing news. Rightly

MISSILE warfare has erupted in the Middle East. On Jun 13, as the bombs began to fly, S&P 500 futures fell by 1.6 per cent. But as the hours passed, the stock market steadily climbed. The index has now recovered to around 6,000, a hair’s breadth from an all-time high.

Such movements reflect a new market mantra: “Nothing ever happens.” The phrase emerged from the depths of 4chan, an online forum, more than a decade ago, and has become a popular meme among youngish investors.

On the face of it, the saying seems wildly out of place in an era of both trade war and conventional conflict. But consider the long list of recent events that at first seemed to have epoch-making potential, only to fizzle out, and it appears more reasonable.