The pure fundamental analyst may desire to ignore short-term
price volatility and emphasize long-term fundamental indicators.
Traditional wisdom has defined market risk as being price-related
alone; but that is illogical. If we accept the idea that short-term price
movement is unreliable, then it cannot be used to reliably define risk
either. Considering the outside influences on price—earnings sur-
prises, reported earnings without core adjustments, and broad mar-
ket trends, for example—it becomes clear that short-term price is
highly suspect as a long-term indicator. Because the market price
does not reflect core earnings, but rather the market’