The dangers of investing based on "news"...

Traders and investors get into more trouble and make more expensively wrong decisions by following news than for any other reason.  So heavily influenced by the news, the majority get lost in the maze, unable to see what smart money is doing.  News is also important to smart money because they understand the role news plays in the market game, and they can usually act most effectively under the protective cover of news.  They know that news misleads the opposing game player into selling them stocks when the smart money wishes to buy and into buying their stocks when the smart money decides that the time has arrived for distribution.  As a market aid, news is of little or no value in playing the market game successfully.  News is generally for suckers.  It misleads more often than it guides. It creates mistimed fears, which provoke selling at the wrong time and raises hopes, which encourage the buying of stocks at the wrong time.  The reason news has very little relationship to what the market is going to do is simply because the market is moving on tomorrow's news, and the current news is a stale factor to the market.

-Joseph Granville, New Strategy of Daily Stock Market Timing for Maximum Profit, 1976

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