The market makes the news — not the other way around.
Far too many investors fail to understand that. When the news is very negative, its usually AFTER the market has been deeply whacked. They are reporting what has already occurred; That’s their jobs.
My goal here isn’t to bash the Press (that stuff is silly). Rather, it is to show you that the media is not telling you what is most probably going to happen next. To investors, news mostly old — its pretty much history as far as sock prices are concerned. What matters most to your portfolio is what the near future holds.
As an example, consider this collection of Time Magazine covers.
Click through for 30 years of Time Magazine Covers.
Incidentally, I do not know the original author — this has been circulating via email for some time. If anyone has a clue, please mention it in the comments.
Apprenticed Investor: Lose the News
The Street.com, 06/16/05