This column warns investors to be wary of what they read and hear in the Financial Press.
Here’s the ubiquitous excerpt:
Have you ever noticed how the stock market reacts differently to the same
Why is it that we sometimes sell off "in response to rising oil prices," but
at other times the "market rallied, despite the rise in the price of crude"?
How come a selloff was caused by a suicide bombing in Iraq, but a week later,
the markets shrugged off an even larger, deadlier bombing? Is it possible that
the markets are responding to forces other than the latest headlines?
Short answer: Absolutely. Yes.
Longer answer: Keep reading.
Prior columns can be found here.