A March 12 article suggests that investors and traders shouldn't bother reading the news published by media sources. Rather, the article picks up on, and seems to agree with, an essay written by a Swiss entrepreneur titled 'Avoid News'.
That essay apparently characterizes 'news' as distracting, time wasting, a creator of anxiety, toxic to mental health, and a 'killer of deeper thinking'. The article then goes on to suggest that investors and traders ignore 'the drumbeat' of economic news, economic data, and "any news chatter that attempts to explain or predict what is happening in the stock market".
Rather, the author suggests investors and traders instead should:
- Read shareholder letters written by successful investors,
- Spend time finding entrepreneurs and investors you can invest alongside.
- Listen in on conference calls of companies and investors they favour.
- Read books written by successful investors.
- Read books that "deepen your understanding of markets and how they work".
I agree that listening to selected conference calls and identifying successful entrepreneurs and perhaps successful investors to invest 'alongside with' (as long as their biases are not too obvious) generally makes sense. However, I strongly disagree with the balance of what is referenced and said in this article.
I believe that 'news' is ever more important to investors and traders as it becomes more available in increasing volume on a 'time sensitive basis'. I say "tell those who are spending countless $ millions on financial market trading algorithms that the 'news' doesn't matter. Make sure you wear a bullet proof vest and take a 'laugh meter' with you when you do that."
Simply put, I believe that 'news filters' and meaningful brief commentaries aimed at encouraging readers to think about what they are hearing and reading is 'the order of the day' in our world of ever increasing information overload. If you agree with the author of article referenced in this commentary, I suggest you simply join the stream of lemmings that pass by your front door and through your computer filters each and every day.
To save some time out of your busy day, I suggest you visit Stock Research Portal for Economic and Resource news that is filtered for you
Read: Lose The News. Source: The Daily Reckoning Blog, Chris Mayer, March 12, 2012. Reading time 5 minutes.