As investor Peter Borish once said, “Price makes news, not the other way round. A market is going to where a market is going to go. The floor can not exist without the people upstairs. The upstairs cannot exist without the people downstairs.”
Don’t you find it astonishing that no one knows where the market is heading next, but after it happens, all these “analysts” know perfectly the reasons why it happened? The same goes for content creators who wrote about “5 reasons why it is not hard to know why Meta (formerly known as Facebook) is not going to do well”, right after it crashed in early 2022. They are going to be the very same group of people who would have written ”5 reasons why Meta is poised to fly further” had Meta shot up in its stock price instead.
And after you read these articles, it will result in what we call confirmation bias (obviously because now that the price has fallen and being fed into the various supporting reasons) and you continue to google the sub points to do your further reading. You will be convinced that there will be more headwinds ahead and you would rather sell away your Meta share at a loss immediately.
The point about the above paragraph is not to talk about if Meta is going to do well in the future. It could have been any other stock but of the same logic. You can easily substitute Meta for Apple, Mastercard, Netflix and the list goes on. What they are all trying to do is to use various reasons or news to justify why the stock moved in a certain way.
Many retail investors would think that by reading such articles or watching such videos is equivalent to them doing their own homework or “due diligence.” That’s not true.
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Timely reminder for investors! thanks for the share Hazelle
Glad the sharing helps you!