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 fight inflation, the Dow and Nasdaq generally fall — unless they don’t because people expected worse or assume the news was already priced into the market.

It’s an imprecise science where people make reactionary moves that drive markets up or down based on some sort of prevailing wisdom. Basically, people take short-term news and put it together to get long-term meaning.

.

Be the first to comment

Leave a Reply

Your email address will not be published.


*