Trying to make sense from markets, and the news, will make you crazy.
In Podcast Episode 436, “Stop Making Sense of Markets,” Casey and Tom refer to the old stock market adage, “buy the rumor, sell the news;” and what to do when the news doesn’t add up to what the market is doing. We continually remind folks that “you can know tomorrow’s news, but you won’t know how the market will react to that news. Unfortunately, that often makes investors bearish – and usually at *just* the wrong time.
If you want to keep your sanity while investing, stop making sense (and a gratuitous nod to the Talking Heads for the title!)
Show Notes for Episode 436:
1:25 “Sell because the camera doesn’t have 97 pixels”
4:17 What to do “when news does not make sense”
6:45 Peter Lynch, Joseph Kennedy & recessions
8:00 Why the belief “if this, then that” is usually wrong
11:55 Investors are often bearish at precisely the wrong time.
The “Zillow Edition” (Spring 2021) from our Mullooly Asset YouTube Channel
Jeff Ptak/Morningstar: “Want to Invest Successfully? Quit Trying to Make Sense of It”
You can also read the Transcript here