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Apprenticed Investor: Lose the News

Posted By Barry Ritholtz On June 16, 2005 @ 2:00 pm In Financial Press,Investing,Markets,Psychology | Comments Disabled

Tscm_1 [1]The latest "Apprentice Investor [1]" column is up at TheStreet.com. Its called  "Lose the News [2]."

This column warns investors to be wary of what they read and hear in the Financial Press [3].

Here’s the ubiquitous excerpt:

Have you ever noticed how the stock market reacts differently to the same
reported events?

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 [2].

Prior columns can be found here [1].


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2005/06/apprenticed-investor-lose-the-news/

URLs in this post:

[1] Image: http://www.thestreet.com/tsc/landingpages/apprentice

[2] "Lose the News: http://www.thestreet.com/_tscana/comment/barryritholtz/10228215.html

[3] Financial Press: http://bigpicture.typepad.com/comments/financial_press/index.html

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