Showing posts with label market comments. Show all posts
Showing posts with label market comments. Show all posts

Sunday 14 June 2009

Listen and read very critically

Keep a critical mind when you read or hear market comments. Ask yourself:

  • Does the commentator have any track record?
  • Are they considering all of the factors?
  • If they are pointing to influences which have been present for some time, why should they start moving the market now?
  • Are they relying on hindsight?
  • Are they hedging their bets?

Be a sceptic. Who is the writer? Don't listen to ill-informed, ad hoc, one-eyed, overpaid, inexperienced, sensationalist, untested, uncommitted and uninvolved people!

It is just too difficult sometimes to have a view. A commentator can gain a lot of respect if he actually said, "I don't know.' He could then continue 'because of the following...' and you know you're going to get a balanced answer. It's brave to say ' I don't know'.