Buzz
Experienced investors understand that trying to predict market movements or obsessing over stock prices is futile. To steer clear of investing mistakes, it’s crucial to recognize our own limitations. Wealth advisor Jonathan K. DeYoe effectively explains why this is important.
He states:
What we see in the media is simply "old news"
: Every portfolio manager already knows this, and it has already been incorporated into the stock’s price. If you ever find yourself knowing something that others don’t and use that to make buy/sell decisions, it is likely considered "insider information," and you could end up in jail for trading based on it. The system is designed so that if you know it, so does everyone else. There is no informational edge to be gained from public media sources, and information obtained from private sources, even if accurate, might not be legal.
I appreciate DeYoe’s reminder not to fool ourselves into thinking we’re investment experts. His point about "old news" makes it clear that relying on news articles about specific stocks to guide our investment choices is probably unwise. He provides more insights in his full article.
Image courtesy of OTA Photos.
