Much activity in financial markets is based on expectations rather than final results. Investors and traders often buy and sell based on their predictions of future events, which may involve economic data, company performance, policy changes, or other market dynamics. This expectation-based behavior can significantly impact asset prices. Here are some detailed instructions:

### 1. **Market Expectations and Prices**

- **Price Reflects Expectations**: Financial market prices often reflect investors’ collective expectations of future events. For example, stock prices may rise before a company reports quarterly earnings if the market expects the company to report strong earnings.

- **Event Driven**: Even if the final result is not as expected, the market price may adjust after the result is announced. For example, if expected results fall short of expectations, the stock price may fall, even though the company may actually perform reasonably well.

### 2. **News and Announcements**

- **Forward-Looking Information**: Economic data, company announcements and news events are often anticipated by the market before they are officially released. Traders will trade based on these expectations. For example, expected interest rate decisions, government policy changes, or major company product launches.

- **Market Reaction**: When actual results do not match expectations, the market will adjust quickly. For example, if a company that is expected to release positive news ends up releasing more negative news, its stock price may fall significantly.

### 3. **Speculation and Hype**

- **Speculative Behavior**: Investors may speculate based on predictions of short-term market movements. Speculators often buy and sell before information is released or a market event occurs in the hope of profiting from price movements.

- **Hype Effect**: Sometimes there will be hype in the market for certain assets, causing prices to rise sharply. Such hype is often based on optimistic expectations about future potential, not necessarily on current fundamentals.

### 4. **Psychology and Emotions**

- **Investor Psychology**: The psychology and emotions of market participants play an important role in the formation of market prices. Optimism can drive markets up, while pessimism can cause markets to fall.

- **Herding**: Investors sometimes follow market trends even if their personal analysis does not support those trends, further amplifying market movements based on expectations