European News Distorts Market Outlook – Here's What Really Counts

Thursday, June 14, 2012

European News Distorts Market Outlook – Here's What Really Counts

The News title 2006–2011 (Photo credit: Wikipedia)

European News Distorts Market Outlook – Here's What Really Counts. Would you trust a broken navigation system? Like a broken navigation system, news coverage is leading investors in the wrong direction. To illustrate: Sunday, June 10, 2012:

“US stock futures gain 1% on Spain aid deal”

“Global markets buoyed by EU aid for Spanish banks”

Monday, June 11, 2012:

“Global market rally fizzles as Spain bank bailout details unclear”

“Spain bank bailout optimism gives way to fear”

Tuesday, June 12, 2012:

“Wall Street rallies despite unease of Europe”

“With much unclear on Spain rescue, markets yo-yo”

Perhaps I’m just not bright enough for news-based investing, but if I had invested based on the above news coverage, I would have bought high and sold low. ... Continue to read.

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