Out of Thin Air
A headline after the market close today:
Stocks stumble on record oil, inflation worries.
Really? How did this AP writer know that it was THOSE two factors that made the Dow Jones Index drop around 200 points? Do you think he really had a way to connect the drop to the factual issue of high oil and the subjective feeling of “worries”? Or does anyone think that just possibly he made up the headline out of thin air? And that just possibly (like every other day) many people read the headline and said, “Sure, that makes sense, I guess it is time to do something?”
Alex Added:
May 25th, 2008 at 9:07 pm
Well, what is the relevance of such reason? What is the relevance of reasoning only when market had close. From a traders’ pespective, it is either a prediction or a reaction towards price that make sense for long term investment. So; again, what is the relevance of reasoning when such reason do not bring you return?
Peter Blake Added:
May 26th, 2008 at 1:36 am
Yes. These pronouncements really get to me,too. Our local finance reporters in Australia have an annoying habit of attributing any down day after any up day to “profit taking”.
Michael L Beatini Added:
May 26th, 2008 at 3:16 am
It’s a case of publish or perish. The poor guy had to write something to pay his rent. As for the rest of the herd - baaa!
Humbug!
James O. Rohrbach Added:
May 26th, 2008 at 10:06 am
There is a room on Wall Street that has a big white board. On the left side of the board is a list of reasons why the market went up today. On the right side there is a list of reasons why the market went down today. After the close the “experts” go into the room and pick off a reason or reasons for what happened. After all, investors are always looking for the reasons why the market goes up or goes down.
Any reason will do.
Michael Covel Added:
May 26th, 2008 at 4:51 pm
Nice Jim.
Guillaume Chaudemanche Added:
May 27th, 2008 at 8:54 am
Why don’t make you act on the market. Price movement does. That’s why great traders don’t give a damn about headlines. Or take tips. Let them talk about the past. We’ll ride the trend meanwhile.
“I got a whip and I got a saw, baby” ;o))