03/02/11 - Breaking News Bulletin: News Is NOT the Main Driver of Stock Market Trends
Conventional economic wisdom is founded on one core concept: namely, that events that exist outside the market (part of "market fundamentals") trigger trend changes in the financial markets. Because of this belief, you have the mainstream experts of finance watching everything from weather patterns to crop conditions, political exploits to the subtlest changes in punctuation in the Fed's minutes — all in the hopes of anticipating the next big move in commodities, stocks, gold, the dollar, etc. In a nutshell, "positive" news and events cause a rise in prices, while "negative" news pushes prices down. Read more.





