There's good economic news on the horizon, and that's rattling markets. Wait, what?

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  creepycoug Member Posts: 22,749

  

  March 2021

  DerekJohnson said:

  https://cbc.ca/news/business/there-s-good-economic-news-on-the-horizon-and-that-s-rattling-markets-wait-what-1.5929855

  What I liked about this article is that it sets forth some basics and reassures me that there are still people out there like me: the "Fundamentals Investor". It also acknowledges that Wall Street is now a bifurcated beast: the casino is this way sir. the investors club is that way. where would you like to go?
  
  Not sure he sufficiently explained the disconnect between potential good news and a market pull-back. But still.
  
  
  "Markets are increasingly dominated by price action. The more price falls, the more they sell," James Athey, an investment manager with Aberdeen Standard Investments told the Wall Street Journal last week. "The problem is that not every investor is a fundamental investor."
  
  In a market where traders have been making bets on bitcoin with no earnings at all or companies that have so far failed to cover their costs, a switch to "fundamental" investing where valuations are based on what a company is likely to earn in a surging economy could lead to greater market stability in the longer term. But there may be a rough patch first.

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