Why savvy investors pay attention to the latest news
Whether it’s a new regulation set to cripple an industry or a breakthrough product that could send company profits sky-high, you’d expect breaking news to move markets and present investment opportunities aplenty. And it does – just not always in the way you’d think.
What does that mean? There are two types of financial news: the kind investors see coming and the kind they don’t. And both influence market prices in very different ways.
It’s the latter that probably sticks in the mind: those genuinely out-of-the-blue headlines which set prices all aflutter. Think sudden resignations from CEOs, scandals leaked to the press, breaches in cybersecurity – events like these can cause markets to plummet or soar in the blink of an eye.
Then there are those stories any investor worth their sa
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With all this volatility, you may want to write that useful old adage down.