Why Investors Should Ignore the Fed, Interest Rates, and Most News

The stock market often makes big moves based on short-term news. When Jerome Powell mentions that interest rates may continue to rise to combat inflation, the Dow and Nasdaq generally drop — unless they don’t because people expected worse or assume that the news was already priced into the market.

It’s an inexact science where people make reactionary moves that send markets up or down based on some sort of prevailing wisdom. Basically, people take short-term news and conflate it to have long-term meaning.



#Investors #Ignore #Fed #Interest #Rates #News

Leave a Comment

Your email address will not be published.