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"All the bad news about 2012 may have been priced in by the time that year begins."

(https://stocklook.wordpress.com/2011/12/16/ )

What does "priced in" mean in the sentence above?

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tkacka15What does "priced in" mean in the sentence above?

The value of shares usually indicates how the economy will perform in the next six months. If the economy does badly, market indices will go down. In this case the likely bad economic news is reflected in the current prices.

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Thank you for the reply.