How to read it: Here are 10 random stocks we think could go up for reasons we are purely speculating on. Headline: The 10 Best Stocks to Own Right Now How to read it: Certain pundits are constantly predicting peril and end times for the markets and the economy so expect to read a few of these every week as they’ll continue guessing until they’re finally “right.” ![]() Headline: (Permanently-bearish pundit) Predicts a Market Crash Worse than 1987. 100-year storms now seem to come around once a month or so. How to read it: Stuff happens in the markets and we like to attach important-sounding narratives to everything. ![]() Headline: A Perfect Storm Caused Markets to Fall. This is a good thing for long-term investors. How to read it: Don’t panic – expected returns and dividend yields go up during bear markets. Headline: Investors Panic as Stocks Enter a Bear Market. How to read it: Has Fed policy really ever helped you make better investment decisions? Even if you knew exactly what they were going to do in the future you still have no idea how other investors will react. How to read it: Big financial firms have so many strategists that there will surely be a research piece put out in the coming days that totally contradicts whatever they just predicted. Headline: Goldman Sachs Expects Stocks to Rally For the Next 3 Months. How to read it: It’s both always and never a stock-picker’s market because it all depends on the quality of the stock-picker, not the market. Headline: Is This the stock-Picker’s Market We’ve Been Waiting For? Headline: _Could Cause Gold to Rise to $1500/oz. Those with decades to save and invest should hope it continues. How to read it: Retirement savers rejoice as stocks fall on the week. Headline: The Stock Market Enters a Painful Correction How to read it: Ask us again in a few months. The past just feels more certain because now we know what really happened. How to read it: The future is always uncertain. Headline: Investors Are Dealing With More Uncertainty. The market is up just over 50% of all trading days and down just under 50% of all trading days so you can never put too much stock in any one day. How to read it: No one ever really knows why stocks rise or fall on a single day. ![]() ![]() Headline: Markets Got Slaughtered Today: A Sign of Worse Things to Come? How to read it: Soros has around $25 billion so what he does with his money shouldn’t concern most investors. Headline: George Soros Gained/Lost $1 Billion And volatility works both ways – to the upside and the downside – so really this is just a way of saying the markets will fluctuate, which of course they will. How to read it: Saying you expect volatility to pick up at some point in the future is like saying you expect it to rain at some point in the future. Headline: (Popular economist/fund manager) Expects Market Volatility to Pick Up Later This Year How to read it: Millions of shares traded hands today because investors all have different goals, strategies, risk profiles, holding periods and ideas. Headline: Stocks Rose/Fell Today by 1% Because of _ I couldn’t have said it better myself, so let this be a guide for you:* I’ve always advised clients to approach financial news as interesting, but not reliable as an investment strategy source.īen Carlson, author of the A Wealth of Common Sense blog, recently did a great job outlining how to read financial news headlines.
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