Take $TLRY as an example—when the rules shift, market prices often react ahead of actual fundamentals catching up. This is a critical lesson for traders watching policy-sensitive assets.

With $FMKT, the dynamic is even more direct: policy changes themselves become the market catalyst. Rather than waiting for earnings reports or operational metrics to reflect new regulations, the market reprices immediately based on anticipated policy impact.

The key insight here is timing. Investors who understand this pattern recognize that policy announcements or regulatory shifts can trigger volatility before traditional valuation models adjust. For assets where government policy is the primary driver, this means watching policy signals closely—they often move markets faster than most fundamentals would.