Comments on: This is why you should ignore daily news on money

By: MonoMoney Sunday Round-Up

MonoMoney Sunday Round-Up — Sat, 09 Aug 2008 22:50:27 +0000

[...] I Will Teach You To Be Rich had a very short but very funny (and informative) post last month about not listening to the news regarding investing. Jump to the post. [...]

By: Prof. Silver

Prof. Silver — Tue, 05 Aug 2008 00:51:12 +0000

I agree the average investor need not worry about daily news. The market is volatile now, but it has been volatile in the past. One major difference is that 10-15 years ago market news was not as timely or readily available to the average person. For those who do not know much about financial markets, the breaking news, real-time quotes, etc. can make things seem terribly scary!

By: ekrabs

ekrabs — Wed, 30 Jul 2008 15:38:35 +0000

There’s a huge amount of volatility in the stock market right now. I mean, this really is unusual. One day, huge run up, next day huge drop, day after that, back huge run up again. And the ones leading all this are companies that have some of the weakest fundamentals (along with some legitimate good news from good companies).

The news… usually only reports what’s going on right now, which is chaos in my opinion. And by the time they report it, they’re typically already a day late. I think that’s forgivable if they’re just doing their job and reporting the news. Not so forgivable is when some feel the need to put on their amateur economist hat.

However, I believe you may be referring to reader’s reaction to news, which I fully agree that if you are easily worried by news of high volatility, it would be best not to look at the news right now.

By: Mark Inman

Mark Inman — Wed, 30 Jul 2008 11:18:03 +0000

While I understand where you are coming from, the fact is, the media is a great predictor of short term gains and losses in the market (approximately 1-6 weeks with a correlation of about 85% to the DAX). But one mustn’t base their predictions on hyped stories in mainstream media, but rather on the quotes analysts use in media like the financial times and Wall Street Journal. Once a stock or commodity reaches a particular awareness threshold for that market with a net of positive or negative statements, the stock will move in the corresponding direction.

-Mark Inman
Media analyst for Media Tenor International

*Media Tenor International is a U.N. recognized media watchdog specializing in quantitative media analysis.

By: Tage

Tage — Tue, 29 Jul 2008 19:51:20 +0000

This just solidifies the thought that a person usually should just buy and hold, and in that buy and hold index funds! Good point there Ramit.

By: Ryan @ Smarter Wealth

Ryan @ Smarter Wealth — Mon, 28 Jul 2008 00:28:27 +0000

Haha funny post

By: Igor L

Igor L — Sun, 27 Jul 2008 16:42:02 +0000

Good observation, this is the kind of stuff that keeps me comming back.
every morning as I wake up turn the switch and read the news your website will be one of the first that I visit.

go ramit =)

By: Weekly Dividend Investing Roundup - July 26, 2008 » The Dividend Guy Blog

Weekly Dividend Investing Roundup - July 26, 2008 » The Dividend Guy Blog — Sat, 26 Jul 2008 15:17:09 +0000

[...] If you don’t want to lose money, then do NOT read the news [...]

By: Barbara Saunders

Barbara Saunders — Fri, 25 Jul 2008 17:09:25 +0000

This reminds me of one of my pet peeves, the phrase “the economy” as used in general parlance. People say “the economy” is bad when they and two or three friends have lost jobs, and that it is good when they are doing well. It seems to be an excuse for remaining powerless.

A friend of mine owns a business that was booming in 1991 and slow during the dot-com era. Why? Because during the dot-com era, his primary customers (younger, bohemian types) were not able to find affordable housing in San Francisco. He still insists that “the economy” was “good” in the early 1990s.

Of course, this pardons him for not tracking his market and customers and changing his merchandising, branding, and offerings in response to reality!

By: JaM

JaM — Fri, 25 Jul 2008 16:30:33 +0000

The news media is always late to the party, specially with reference to financial or economy related areas. TV, web or print – one should realize that news is reported after the event or fact, if there is a news article before an event then either it is for spin purposes or mere speculation. Anyone interested in trading stock should therefore be very wary of trading based on news media, the solution is to trade based on educated judgment based on company and economic fundamentals or just plain vanilla index funds.