There have been many reminders during the past quarter that share prices are often as much a commentary about a company as Strictly Come Dancing is a serious technical look at the art of ballroom dancing.
That isn’t to say that the two disciplines are necessarily interchangeable – I doubt many investors would opt for a Strictly judge to run their portfolios, although the sight of Warren Buffett dancing the Cha Cha Cha is something that I would pay to see.
Rather the key point is that in both cases the outcome is as much a popularity contest as it is specifically related to excellent performance. In share price terms, 'winning' this popularity contest isn't always straightforward. It doesn’t mean taking home a horrible plastic trophy after endorsing an obscure charity. Often the surge in interest is sudden and in contrast to recent evidence, for instance when reaction to specific news can cause shares to efficiently reflect a company’s prospects after a period of directionless stagnation.