Thursday, June 16, 2005

should you listen to the news?

Though Ritholtz says no, in the second breath he says it can be a great contrary indicator.



So in my book that means yes. He also references an article by Gary B. Smith which found that after an initial response to disastrous news, "the markets resume whatever their prior trend was". In other words, buy on bad news, assuming that the prior trend was up.

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